Investment Management Contract Template for Canada
Generate a bespoke document
What is a Investment Management Contract?
The Investment Management Contract serves as the foundational document for establishing and governing the relationship between professional investment managers and their clients in Canada. This agreement is essential when an individual or institution delegates investment decision-making authority to a professional manager regulated under Canadian securities laws. The contract comprehensively addresses crucial elements including investment strategy, risk management, fee structures, and reporting requirements, while ensuring compliance with federal and provincial regulatory requirements. It is particularly important for registered investment managers under National Instrument 31-103 and must reflect specific Canadian regulatory obligations regarding fiduciary duty, know-your-client requirements, and investor protection measures. The agreement typically includes detailed schedules for investment policies, fee structures, and specific client requirements, making it adaptable to various investment management scenarios while maintaining regulatory compliance.
About the Investment Management Contract
An Investment Management Contract is a legally binding agreement that formalizes the relationship between you as a client and a professional investment manager in Canada. This document grants discretionary authority to qualified investment professionals to make investment decisions on your behalf while establishing clear parameters, responsibilities, and protections under Canadian securities legislation.
When do you need this document?
You need an Investment Management Contract when engaging a registered investment manager to handle your investment portfolio with discretionary authority. This is essential for high-net-worth individuals seeking professional portfolio management, pension funds delegating investment decisions, institutional investors hiring external managers, or family offices establishing formal investment management relationships. The contract is also required when setting up managed accounts with investment dealers, engaging sub-advisors for specific asset classes, or establishing investment management services for trust accounts where trustees delegate investment decisions to professional managers.
Key legal considerations
The contract must clearly define the scope of discretionary authority granted to the investment manager and establish investment objectives, risk tolerance, and any restrictions on investments. Fee structures must be transparent and comply with regulatory requirements, including disclosure of all direct and indirect costs. The agreement should address fiduciary responsibilities, requiring the manager to act in your best interests at all times. Important clauses include performance measurement standards, reporting frequency and format, termination procedures, and liability limitations. The contract must also establish procedures for handling conflicts of interest, client complaints, and emergency situations where immediate investment decisions are required.
Legal requirements in Canada
Investment Management Contracts in Canada must comply with provincial Securities Acts and IIROC rules governing registered investment managers. The agreement must reflect know-your-client (KYC) requirements under National Instrument 31-103, ensuring the manager understands your financial situation, investment knowledge, and risk tolerance. Anti-money laundering provisions under the Proceeds of Crime Act must be incorporated, including client identification and ongoing monitoring procedures. Privacy protection under PIPEDA requires specific clauses governing the collection, use, and disclosure of your personal information. The contract must also address regulatory reporting requirements, including the manager's obligation to file required regulatory forms and maintain proper books and records as mandated by Canadian securities regulators.
GOVERNING LAW
Applicable law
This Investment Management Contract is drafted to comply with Canada law. Key legislation includes:
Investment Industry Regulatory Organization of Canada (IIROC) Rules: Self-regulatory organization rules governing investment dealers and trading activity in Canadian debt and equity markets
Proceeds of Crime (Money Laundering) and Terrorist Financing Act: Federal legislation requiring investment managers to implement anti-money laundering and know-your-client procedures
Personal Information Protection and Electronic Documents Act (PIPEDA): Federal privacy legislation governing the collection, use, and disclosure of personal information in commercial activities
National Instrument 31-103: Registration Requirements, Exemptions and Ongoing Registrant Obligations - Sets out the core requirements for investment management firms and their representatives
Civil Code (Quebec) / Common Law (Other Provinces): Basic contract law principles governing formation and enforcement of contracts, varying by province
Income Tax Act: Federal legislation governing tax implications of investment management services and reporting requirements
Competition Act: Federal legislation governing competitive practices and relevant to fee structures and market conduct
National Instrument 81-102: Investment Funds regulation governing mutual funds and other investment products that may be relevant to the management mandate
Explore 208,390+ legal templates
Explore 208,390+ legal templates
Genie's Security Promise
Genie is the safest place to draft. Here's how we prioritise your privacy and security.
Your data is private:
We do not train on your data; Genie's AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it