The Investment Mandate Agreement is a crucial document used in the Maltese financial services industry to formalize the relationship between investment managers and their clients. It is required whenever a licensed investment services provider in Malta undertakes to manage investments on behalf of clients, whether on a discretionary or non-discretionary basis. The agreement must comply with the Investment Services Act (Chapter 370 of the Laws of Malta), MFSA regulations, and EU directives including MiFID II. It typically includes detailed provisions on investment strategy, risk management, regulatory compliance, reporting requirements, and fee structures. The document is essential for both retail and professional clients, though the level of detail and protective provisions may vary based on client classification. Investment service providers must ensure the agreement reflects current regulatory requirements while maintaining flexibility for specific client needs.

1. Parties: Identification of the investment manager and the client, including regulatory status and contact details

2. Background: Context of the agreement and brief description of the services to be provided

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

4. Appointment and Scope of Services: Formal appointment of the investment manager and outline of core services

5. Regulatory Status and Client Classification: Confirmation of the manager's regulatory status and client's classification under MiFID II

6. Investment Objectives and Restrictions: Agreed investment strategy, objectives, and any specific restrictions

7. Powers and Duties of the Investment Manager: Detailed description of the manager's authority, responsibilities, and duties

8. Client's Representations and Warranties: Client's confirmations regarding their status, authority, and understanding

9. Risk Disclosures: Mandatory risk warnings and acknowledgments

10. Fees and Charges: Detailed fee structure, calculation methods, and payment terms

11. Reporting and Valuations: Frequency and content of reports, valuation methods

12. Conflicts of Interest: Disclosure and management of potential conflicts

13. Liability and Indemnification: Extent of manager's liability and mutual indemnification provisions

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

15. Confidentiality and Data Protection: Confidentiality obligations and GDPR compliance measures

16. General Provisions: Standard clauses including notices, amendments, governing law, etc.