Investment Mandate Agreement Template for Austria

The Investment Mandate Agreement is a crucial document used when establishing a discretionary investment management relationship between an investment manager and a client in Austria. It is required whenever a licensed investment manager takes on the responsibility of managing client assets on a discretionary basis. The agreement must comply with Austrian financial regulations, particularly the Securities Supervision Act 2018 (WAG 2018) which implements MiFID II, the Banking Act (BWG), and relevant EU regulations. This document outlines the scope of authority granted to the manager, investment guidelines, risk parameters, reporting obligations, and fee structures. It includes mandatory regulatory disclosures, client categorization requirements, and specific provisions required under Austrian law. The Investment Mandate Agreement serves as the primary contractual framework protecting both the investment manager and the client while ensuring regulatory compliance.

1. Parties: Identification of the investment manager and the client, including regulatory status and contact details

2. Background: Context of the agreement and confirmation of the client's desire to appoint the investment manager

3. Definitions and Interpretation: Key terms used throughout the agreement, including regulatory and investment-specific terminology

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 on investments

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

7. Client Categorization: Classification of the client according to MiFID II categories (retail/professional/eligible counterparty)

8. Risk Disclosures: Mandatory risk warnings and acknowledgments required under Austrian law

9. Fees and Expenses: Management fees, performance fees, and other charges, including calculation methods

10. Reporting and Valuations: Frequency and content of portfolio reports and valuations

11. Conflicts of Interest: Disclosure and management of potential conflicts

12. Client Representations and Warranties: Client confirmations regarding their status, authority, and understanding

13. Manager Representations and Warranties: Manager confirmations regarding regulatory status, authority, and capabilities

14. Anti-Money Laundering: AML/KYC requirements and ongoing obligations

15. Data Protection: GDPR compliance and data processing terms

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

17. Liability and Indemnification: Extent of manager's liability and client indemnifications

18. Notices: Communication methods and contact details

19. Governing Law and Jurisdiction: Confirmation of Austrian law and jurisdiction