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Discretionary Investment Management Agreement Template for Singapore

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Key Requirements PROMPT example:

Discretionary Investment Management Agreement

"Need a Discretionary Investment Management Agreement for a Singapore-based hedge fund manager providing services to institutional clients in Asia, with specific provisions for derivatives trading and quarterly performance reporting, to be effective from March 2025."

What is a Discretionary Investment Management Agreement?

The Discretionary Investment Management Agreement is a critical document used when a client delegates investment decision-making authority to a professional investment manager in Singapore. It establishes the legal framework for the relationship, ensuring compliance with the Securities and Futures Act, Financial Advisers Act, and MAS guidelines. The agreement covers essential elements including investment strategy, risk parameters, fees, reporting requirements, and termination provisions. It's particularly important in Singapore's highly regulated financial services environment, where specific legal and regulatory requirements must be met for fund management activities.

What sections should be included in a Discretionary Investment Management Agreement?

1. Parties: Identification of the investment manager and client, including registration details and addresses

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

3. Definitions: Key terms used throughout the agreement

4. Appointment and Authority: Formal appointment of the investment manager and scope of discretionary authority

5. Investment Objectives and Strategy: Agreed investment objectives, strategy, and any restrictions

6. Fees and Expenses: Management fees, performance fees, and other charges

7. Representations and Warranties: Standard declarations from both parties

8. Duties and Obligations: Responsibilities of the investment manager and client

9. Risk Disclosures: Mandatory risk warnings and acknowledgments

10. Termination: Conditions and process for termination

What sections are optional to include in a Discretionary Investment Management Agreement?

1. Soft Dollar Arrangements: Details of any soft dollar arrangements - used when the manager uses soft dollar commissions

2. Performance Reporting: Specific reporting requirements beyond standard obligations - used when client requires custom reporting

3. Foreign Account Provisions: Special provisions for foreign accounts - used when client is non-Singapore resident

4. Delegation: Terms for delegation to sub-managers - used when sub-managers may be appointed

What schedules should be included in a Discretionary Investment Management Agreement?

1. Investment Guidelines: Detailed investment parameters, restrictions, and benchmarks

2. Fee Schedule: Detailed breakdown of all fees and charges

3. Risk Disclosure Statement: Comprehensive risk disclosures required by MAS

4. Authorized Persons: List of persons authorized to give instructions

5. Custodian Details: Information about appointed custodian and custody arrangements

6. Client Information Form: KYC information and investment profile

Authors

Alex Denne

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

Relevant legal definitions








































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Industries

Securities and Futures Act (SFA): Primary legislation governing securities and futures markets in Singapore, covering licensing requirements for fund managers, capital requirements, client asset handling, and disclosure obligations

Financial Advisers Act (FAA): Key legislation governing the provision of financial advisory services, including requirements for client disclosure, handling client information, and conduct of financial advisory business

MAS Guidelines: Regulatory guidelines issued by the Monetary Authority of Singapore covering licensing, registration, conduct of business for fund management companies, risk management practices, and standards of conduct

Personal Data Protection Act (PDPA): Legislation governing the collection, use, disclosure and care of personal data, including consent obligations and data protection requirements

AML/CFT Regulations: Anti-Money Laundering and Countering Financing of Terrorism regulations, including MAS Notice SFA04-N02 and Know Your Client (KYC) requirements

Trust Law: Common law principles governing fiduciary relationships, including duties and obligations of investment managers acting in a fiduciary capacity

Singapore Contract Law: Fundamental contract law principles governing formation of contract, terms and conditions, and termination provisions in Singapore

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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