Money Management Contract Template for Hong Kong

When you engage a professional money manager in Hong Kong, you need a comprehensive contract that protects your interests while ensuring regulatory compliance. A Money Management Contract serves as your legal foundation for any investment management relationship, whether you're seeking discretionary portfolio management or advisory services from licensed financial professionals.

When do you need this document?

You require this contract whenever you appoint a licensed corporation or registered institution to manage your investments under Hong Kong's regulatory framework. This includes situations where you're engaging an asset manager for discretionary trading authority, seeking non-discretionary investment advice, or establishing ongoing portfolio management services. High-net-worth individuals typically use these contracts when working with private wealth managers, while institutional clients need them for mandate-based investment management. Corporate treasurers require these agreements when outsourcing investment decisions for company funds, and family offices use them to formalize relationships with external investment managers.

Key legal considerations

Your contract must clearly define the scope of investment authority, distinguishing between discretionary and advisory mandates. Investment objectives and risk parameters need explicit documentation to prevent disputes and ensure suitability compliance. Fee structures require transparent disclosure, including management fees, performance fees, and any third-party costs that may be charged to your account. The agreement should specify reporting obligations, including frequency and format of portfolio statements and performance reports. Termination clauses must address notice periods, asset transfer procedures, and final account reconciliation. Client asset protection provisions are crucial, ensuring your funds remain segregated from the manager's own assets in compliance with SFC requirements.

Legal requirements in Hong Kong

Under the Securities and Futures Ordinance, your money manager must hold appropriate licenses from the Securities and Futures Commission for the services being provided. The contract must include mandatory risk disclosures and ensure compliance with know-your-client obligations under anti-money laundering regulations. Professional investor classifications require specific documentation if you qualify for reduced regulatory protections. Personal data handling must comply with the Personal Data Privacy Ordinance, with clear consent for data collection and processing activities. The agreement should reference applicable codes of conduct and regulatory guidelines that govern the manager's behavior. If your manager delegates any functions to sub-advisors, the contract must clearly disclose these arrangements and maintain your rights to object to such appointments.