Sub Advisor Agreement Template for Austria

A Sub Advisor Agreement is essential when an investment manager or financial institution wishes to delegate certain investment management responsibilities to another qualified entity while maintaining regulatory compliance and oversight. This document, governed by Austrian law, is particularly relevant in scenarios where specialized investment expertise is required or when managing complex investment strategies across different asset classes. The agreement must comply with Austrian financial regulations, including the Securities Supervision Act (WAG 2018) and Banking Act (BWG), while addressing crucial aspects such as investment guidelines, risk management, reporting requirements, and data protection. It's commonly used by investment firms, fund managers, and financial institutions operating in Austria who need to formalize sub-advisory relationships while ensuring regulatory compliance and protecting client interests.

1. Parties: Identification of the primary investment advisor and sub-advisor, including regulatory registration details

2. Background: Context of the arrangement, including primary advisor's authority to delegate and sub-advisor's qualifications

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

4. Appointment and Scope of Services: Formal appointment of sub-advisor and detailed description of delegated investment management duties

5. Regulatory Compliance: Obligations to comply with Austrian financial regulations, including WAG 2018 and BWG requirements

6. Standard of Care and Representations: Professional standards, fiduciary duties, and material representations of both parties

7. Fees and Expenses: Compensation structure, payment terms, and allocation of expenses

8. Risk Management and Investment Guidelines: Investment restrictions, risk parameters, and compliance monitoring procedures

9. Reporting and Oversight: Regular reporting requirements, performance monitoring, and oversight mechanisms

10. Confidentiality and Data Protection: Obligations regarding confidential information and compliance with DSG and GDPR

11. Liability and Indemnification: Allocation of liability, indemnification provisions, and insurance requirements

12. Term and Termination: Duration of agreement, termination rights, and post-termination obligations

13. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution