Asset Management Agreement for Australia

Asset Management Agreement Template for Australia

A comprehensive legal agreement governed by Australian law that establishes the terms and conditions under which an asset manager provides professional investment management services to clients. The document outlines the scope of services, investment guidelines, fees, reporting requirements, and regulatory obligations in accordance with Australian financial services regulations, including the Corporations Act 2001 and ASIC requirements. It incorporates essential provisions for risk management, compliance, and client protection while defining the responsibilities and authorities of both the asset manager and the client.

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What is a Asset Management Agreement?

The Asset Management Agreement is a critical legal document used in the Australian financial services sector to formalize the relationship between professional asset managers and their clients. It is essential when engaging an asset manager to provide discretionary or non-discretionary investment management services for various types of assets, including securities, real estate, or other investment vehicles. The agreement must comply with Australian regulatory requirements, particularly the Corporations Act 2001 and ASIC guidelines, and is typically used by financial institutions, investment firms, and professional asset managers when providing services to institutional clients, high-net-worth individuals, or retail clients. The document encompasses crucial elements such as investment strategy, risk management, performance measurement, fee structures, and reporting obligations, while ensuring appropriate client protections and regulatory compliance mechanisms are in place.

What sections should be included in a Asset Management Agreement?

1. Parties: Identification of the asset manager and the client, including ABN/ACN details

2. Background: Context of the agreement, including client's objectives and asset manager's qualifications

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. Appointment and Authority: Formal appointment of the asset manager and scope of authority

5. Services: Detailed description of asset management services to be provided

6. Duties and Responsibilities: Specific obligations of the asset manager

7. Investment Guidelines: Parameters and restrictions for investment decisions

8. Fees and Expenses: Fee structure, calculation methods, and payment terms

9. Reporting and Valuations: Requirements for periodic reporting and asset valuation

10. Compliance and Risk Management: Regulatory compliance obligations and risk management procedures

11. Representations and Warranties: Standard representations by both parties

12. Liability and Indemnification: Extent of liability and indemnification provisions

13. Confidentiality: Protection of confidential information

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

15. General Provisions: Standard boilerplate clauses including governing law, notices, etc.

What sections are optional to include in a Asset Management Agreement?

1. Retail Client Provisions: Additional provisions required when dealing with retail clients under Corporations Act

2. Custody Arrangements: Required if the asset manager provides custody services

3. Foreign Investment Provisions: Required for portfolios including international investments

4. Delegation and Sub-contracting: Required if services may be delegated to third parties

5. ESG Investment Criteria: Required for mandates including environmental, social, and governance considerations

6. Performance Fees: Optional incentive fee structures based on performance

7. Key Person Provisions: Required when specific individuals are crucial to service delivery

8. Force Majeure: Optional provisions for unforeseen circumstances affecting performance

What schedules should be included in a Asset Management Agreement?

1. Schedule 1 - Investment Mandate: Detailed investment objectives, strategy, and restrictions

2. Schedule 2 - Fee Schedule: Detailed breakdown of all fees, charges, and calculation methodologies

3. Schedule 3 - Authorized Persons: List of authorized representatives for both parties

4. Schedule 4 - Reporting Requirements: Specific reporting formats, frequencies, and content requirements

5. Schedule 5 - Service Level Agreement: Detailed performance metrics and service standards

6. Appendix A - Risk Disclosure Statement: Required risk warnings and disclosures

7. Appendix B - Compliance Procedures: Detailed compliance protocols and procedures

8. Appendix C - Valuation Principles: Methodology for valuing different types of assets

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Genie AI

Sector

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Investment Management

Banking

Insurance

Superannuation

Real Estate

Infrastructure

Private Equity

Wealth Management

Professional Services

Relevant Teams

Legal

Compliance

Investment Management

Risk Management

Client Services

Operations

Finance

Portfolio Management

Wealth Management

Asset Management

Relevant Roles

Chief Investment Officer

Portfolio Manager

Investment Manager

Compliance Officer

Legal Counsel

Risk Manager

Client Relationship Manager

Operations Manager

Investment Analyst

Fund Manager

Asset Manager

Wealth Manager

Financial Advisor

Chief Financial Officer

Chief Operating Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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