The Investment Advisory Agreement Template is designed for use in the United Arab Emirates financial services sector, providing a structured framework for investment advisory relationships. This document is essential for financial institutions and advisory firms operating under UAE Securities and Commodities Authority (SCA) supervision. It covers crucial aspects including service scope definition, regulatory compliance, risk management, and fee arrangements, while incorporating specific UAE market requirements and practices. The template is adaptable for various client types, from individual investors to institutional clients, and includes provisions for both conventional and Shariah-compliant advisory services. It's particularly relevant in the context of UAE's growing position as a regional financial hub, requiring strict adherence to local regulatory requirements while maintaining international best practices.

1. Parties: Identification of the investment advisor and the client, including licensing details and registration information as per UAE SCA requirements

2. Background: Context of the agreement, regulatory framework, and brief overview of the intended advisory relationship

3. Definitions: Key terms used throughout the agreement, including regulatory-specific terminology as per UAE laws

4. Appointment and Scope of Services: Detailed description of investment advisory services to be provided, including any limitations and exclusions

5. Regulatory Status and Compliance: Statement of advisor's regulatory status, relevant licenses, and compliance with UAE SCA regulations

6. Client Representatives and Communications: Designation of authorized representatives and approved methods of communication

7. Fees and Payment Terms: Detailed fee structure, payment schedule, and any additional charges

8. Client's Obligations and Representations: Client's responsibilities, including information provision and compliance with local laws

9. Risk Disclosures: Mandatory risk warnings and disclosures as per UAE regulations

10. Confidentiality: Confidentiality obligations and permitted disclosures

11. Conflicts of Interest: Disclosure and management of potential conflicts as per UAE SCA requirements

12. Term and Termination: Duration of agreement and termination provisions

13. Liability and Indemnification: Extent of advisor's liability and mutual indemnification provisions

14. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction for disputes

15. General Provisions: Standard boilerplate clauses including amendments, assignments, and notices