Discretionary Management Agreement Template for Netherlands

The Discretionary Management Agreement is a crucial document used in the Netherlands when establishing a professional relationship where an investment manager is granted authority to make investment decisions on behalf of a client without seeking prior approval for each transaction. This agreement must comply with Dutch financial regulations, particularly the Financial Supervision Act (Wft) and MiFID II implementation requirements. It is typically used by licensed investment firms, banks, and asset managers when providing services to both retail and institutional clients. The document comprehensively covers investment parameters, risk management, fee structures, reporting requirements, and regulatory obligations specific to the Dutch market. It includes mandatory client categorization, risk disclosures, and best execution requirements as prescribed by Dutch and EU regulations.

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: Definitions of key terms used throughout the agreement

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

5. Investment Objectives and Strategy: Agreed investment objectives, strategy, and any investment restrictions

6. Services: Detailed description of discretionary management services to be provided

7. Client Categorization: Classification of the client under MiFID II regulations

8. Risk Disclosures: Mandatory risk warnings and disclosures

9. Fees and Expenses: Management fees, performance fees, and other costs

10. Reporting and Valuations: Frequency and content of portfolio reports and valuations

11. Client's Obligations: Client's responsibilities including information provision and compliance with regulations

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

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

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

15. Confidentiality: Confidentiality obligations and permitted disclosures

16. Data Protection: GDPR compliance and data processing terms

17. Notices: Communication methods and contact details

18. Governing Law and Jurisdiction: Dutch law as governing law and jurisdiction provisions