Non Discretionary Investment Advisory Agreement Template for Indonesia

The Non-Discretionary Investment Advisory Agreement is essential for investment advisory firms operating in Indonesia who provide professional investment advice while leaving investment decisions to their clients. This document is required under Indonesian law and OJK regulations when establishing formal investment advisory relationships. It covers crucial elements including scope of services, fee structures, risk disclosures, and compliance requirements under Indonesian financial regulations. The agreement is particularly important as it clearly delineates the non-discretionary nature of the relationship, meaning the advisor cannot execute trades or make investment decisions without client approval. It includes specific provisions required by Indonesian capital market laws and OJK regulations, such as advisor qualifications, client profiling requirements, and mandatory risk disclosures.

1. Parties: Identification of the investment advisor and the client, including registration/license details of the advisor and complete client information

2. Background: Context of the agreement, including advisor's qualifications and client's intention to receive non-discretionary investment advice

3. Definitions: Key terms used throughout the agreement, including technical and regulatory terminology

4. Appointment and Scope of Services: Detailed description of non-discretionary advisory services, emphasizing that execution decisions remain with the client

5. Advisor's Obligations: Specific duties including providing advice, research, reporting, and maintaining confidentiality

6. Client's Obligations: Client responsibilities including providing accurate information, making investment decisions, and maintaining sufficient funds

7. Representations and Warranties: Statements of fact and assurances from both parties regarding their capacity, authority, and compliance with laws

8. Fees and Payments: Structure and calculation of advisory fees, payment terms, and any additional charges

9. Risk Disclosures: Comprehensive disclosure of investment risks and limitations of advisory services

10. Confidentiality: Obligations regarding protection and use of confidential information

11. Term and Termination: Duration of agreement and circumstances under which it can be terminated

12. Indemnification: Mutual indemnification provisions and limitation of liability

13. Governing Law and Dispute Resolution: Application of Indonesian law and method of resolving disputes

14. General Provisions: Standard clauses including amendments, notices, and severability