Asset Management Proposal Template for the United Arab Emirates

When establishing investment management relationships in the United Arab Emirates, you need a comprehensive Asset Management Proposal that complies with UAE Securities and Commodities Authority (SCA) regulations and federal laws. This document serves as your foundation for presenting investment strategies, demonstrating regulatory compliance, and securing client mandates in the UAE's sophisticated financial market.

When do you need this document?

You require an Asset Management Proposal when pitching investment services to high-net-worth individuals, institutional investors, or family offices in the UAE. Investment firms use this document during client acquisition phases to showcase their expertise and proposed strategies. Banks and financial institutions present these proposals when offering discretionary portfolio management services. The document is also essential when responding to requests for proposals from pension funds, sovereign wealth funds, or corporate treasury departments. Additionally, you need this proposal when establishing fund management agreements or when seeking investment committee approvals for new client relationships.

Key legal considerations

Your Asset Management Proposal must include comprehensive risk disclosures as mandated by SCA regulations, clearly outlining potential investment risks and performance disclaimers. The document should specify fee structures, performance benchmarks, and termination clauses to ensure transparency and regulatory compliance. You must address custody arrangements, typically involving licensed custodian banks, and outline reporting obligations to clients and regulatory authorities. Anti-money laundering compliance requirements under UAE Federal Decree Law No. 20 of 2018 must be incorporated, including client due diligence procedures and ongoing monitoring obligations. The proposal should also specify whether Shariah-compliant investment options are available and detail any religious oversight mechanisms.

Legal requirements in United Arab Emirates

Under SCA Board Decision No. (11/R.M) of 2016, your proposal must comply with specific investment management activity regulations, including licensing requirements and operational standards. The document must align with SCA Board Decision No. (3/R.M) of 2017 governing promotional activities, ensuring all marketing materials and investment presentations meet regulatory standards. You must incorporate provisions from UAE Federal Law No. 32 of 2021 regarding corporate governance and business operations, particularly when proposing services to UAE corporate entities. The proposal should address local investment restrictions, UAE dirham exposure requirements where applicable, and mandatory reporting to the Central Bank of the UAE for certain investment activities. Additionally, you must ensure compliance with SCA Decision No. (9/R.M) of 2016 if proposing fund-related investment strategies, including proper fund documentation and investor protection measures.