Asset Management Agreement Template for the United Arab Emirates

An Asset Management Agreement is a comprehensive legal document that formalizes the relationship between you and a licensed asset manager in the United Arab Emirates. This contract delegates investment authority to professional fund managers while establishing clear boundaries, obligations, and protections under UAE financial regulations. Whether you're an individual investor, corporate entity, or institutional client, this agreement serves as your primary protection when entrusting your assets to professional management.

When do you need this document?

You need an Asset Management Agreement when engaging a licensed financial institution to manage your investment portfolio in the UAE. This includes situations where you're seeking professional wealth management services, establishing family office arrangements, or requiring institutional asset management for pension funds or endowments. The document becomes essential when you want to delegate day-to-day investment decisions while maintaining oversight and control over your assets. You'll also need this agreement when establishing discretionary or non-discretionary management arrangements, or when engaging sub-managers or specialized investment advisors as part of your overall investment strategy.

Key legal considerations

Several critical legal elements must be carefully structured in your Asset Management Agreement. The investment mandate section defines the scope of authority you're granting, including asset classes, risk parameters, and investment restrictions that align with your objectives. Fee structures require transparent disclosure, including management fees, performance fees, and any third-party costs that may affect your returns. Liability and indemnification clauses protect both parties while ensuring the asset manager maintains appropriate professional standards. Termination provisions must clearly outline notice periods, asset transfer procedures, and final accounting requirements. Additionally, confidentiality and data protection clauses ensure your financial information remains secure and complies with UAE privacy regulations.

Legal requirements in United Arab Emirates

Under UAE law, Asset Management Agreements must comply with stringent regulatory frameworks established by the Securities and Commodities Authority (SCA) and UAE Central Bank. SCA Decision No. (3/R.M) of 2017 governs the promotion and introduction of financial services, requiring specific disclosures and client protections. Your asset manager must be licensed under UAE Federal Law No. 14 of 2018, which establishes the regulatory framework for financial institutions. The agreement must incorporate anti-money laundering provisions under UAE Federal Law No. 20 of 2018, including customer due diligence and reporting requirements. For collective investment schemes, compliance with SCA Board Decision No. (9/R.M) of 2016 regarding Mutual Funds regulations is mandatory. Additionally, the agreement must address electronic transaction requirements under UAE Federal Law No. 1 of 2006, ensuring digital communications and records meet legal standards for enforceability and regulatory compliance.