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Investment Management Contract Template for England and Wales

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Key Requirements PROMPT example:

Investment Management Contract

"I need an Investment Management Contract for a large pension fund client with specific ESG investment restrictions, including quarterly performance reporting requirements and a tiered fee structure based on assets under management starting from March 2025."

Document background
The Investment Management Contract is essential when establishing a professional relationship between an investment manager and a client for the management of investment portfolios. Used extensively in the UK financial services sector, this agreement ensures compliance with Financial Conduct Authority (FCA) regulations and relevant financial services legislation. The contract typically covers investment strategy, risk management, fee structures, reporting obligations, and termination provisions. It's particularly important in England and Wales where financial services are heavily regulated and require clear documentation of responsibilities and obligations between parties.
Suggested Sections

1. Parties: Identification of the investment manager and client(s), including registered addresses and company details

2. Background: Context of the agreement and brief description of the services to be provided

3. Definitions: Key terms used throughout the agreement including regulated terms under FSMA, MiFID II, and other relevant legislation

4. Appointment and Authority: Formal appointment of the investment manager and scope of authority under FSMA and relevant regulations

5. Investment Objectives and Restrictions: Agreed investment strategy, objectives, and any specific restrictions in compliance with FCA requirements

6. Services: Detailed description of investment management services to be provided under applicable regulations

7. Fees and Expenses: Management fees, performance fees, and other charges in accordance with FCA rules on fee disclosure

8. Reporting and Valuations: Frequency and content of reports, valuation methodology as required by COBS and MiFID II

9. Risk Disclosures: Mandatory risk warnings and disclosures required by FCA regulations

10. Termination: Termination rights and procedures in compliance with regulatory requirements

Optional Sections

1. Custody Arrangements: Details of custody services if provided, including CASS compliance requirements

2. Foreign Account Provisions: Specific provisions for international clients including cross-border regulations

3. Delegation: Terms for delegation of services to third parties under FCA rules

4. ESG Considerations: Environmental, social and governance investment criteria and related disclosures

Suggested Schedules

1. Investment Guidelines: Detailed investment parameters and restrictions in accordance with regulatory requirements

2. Fee Schedule: Detailed breakdown of all fees and charges as required by FCA rules

3. Authorized Persons: List of individuals authorized to give instructions under SMCR requirements

4. Risk Disclosure Statement: Detailed risk warnings specific to the investment strategy as required by COBS

5. Service Level Agreement: Specific performance metrics and service standards in line with regulatory requirements

6. Reporting Templates: Format and content of regular reports as required by MiFID II and FCA rules

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions















































Clauses




































Relevant Industries
Relevant Teams
Relevant Roles
Industries

Financial Services and Markets Act 2000 (FSMA): Primary legislation governing financial services regulation in the UK, establishing regulatory framework and FCA authority

Financial Services Act 2012: Amended FSMA and reformed financial services regulatory structure in the UK

Financial Services and Markets Act 2000 (Regulated Activities) Order 2001: Defines which activities require FCA authorization and regulation

FCA Handbook - COBS: Conduct of Business Sourcebook containing detailed rules for financial services firms' behavior

FCA Handbook - SYSC: Systems and Controls requirements for regulated firms

FCA Handbook - CASS: Client Assets Sourcebook governing the handling and protection of client money and assets

Senior Managers and Certification Regime (SMCR): Framework for individual accountability in financial services firms

UK MiFID II Implementation: UK version of Markets in Financial Instruments Directive II, governing investment services

UK Alternative Investment Fund Managers Regulations 2013: Regulations governing alternative investment fund managers

The Collective Investment Schemes Sourcebook (COLL): Rules and guidance for regulated collective investment schemes

Money Laundering Regulations 2017: Requirements for anti-money laundering controls and procedures

Proceeds of Crime Act 2002: Legislation dealing with money laundering and proceeds of crime

UK General Data Protection Regulation (UK GDPR): Post-Brexit data protection regulation governing personal data processing

Data Protection Act 2018: UK's implementation of data protection requirements and GDPR

Unfair Contract Terms Act 1977: Legislation governing unfair terms in contracts

Consumer Rights Act 2015: Protection for consumers in contracts with businesses, including financial services

Companies Act 2006: Primary legislation governing company formation and operation in the UK

Partnership Act 1890: Legislation governing partnerships, relevant for certain investment management structures

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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