Asset Management Agreement Template for New Zealand

An Asset Management Agreement is a comprehensive legal contract that establishes the formal relationship between you as a client and a professional asset manager in New Zealand. This document governs how your investment portfolio will be managed, setting out clear expectations, responsibilities, and legal protections for both parties under New Zealand law.

When do you need this document?

You need an Asset Management Agreement when delegating control of your investments to a professional manager. This includes situations where you're engaging a fund manager to handle your retirement savings, appointing an institutional manager for your company's investment portfolio, or working with a private wealth manager for personal assets. High-net-worth individuals often require these agreements when establishing discretionary investment management relationships. Corporate entities need them when outsourcing treasury management or pension fund administration. The agreement is also essential when setting up managed investment schemes or when trustees need professional management for trust assets.

Key legal considerations

Several critical legal elements must be addressed in your Asset Management Agreement. The scope of authority granted to the manager must be clearly defined, including investment parameters, risk tolerance levels, and any restricted investments. Fee structures require transparent disclosure, covering management fees, performance fees, and additional charges. Fiduciary duties must be explicitly outlined, establishing the manager's obligation to act in your best interests. Termination clauses should specify notice periods, asset transfer procedures, and final accounting requirements. Liability and indemnification provisions protect both parties from various risks. Confidentiality clauses ensure your financial information remains secure. The agreement must also address reporting frequency, performance benchmarks, and communication protocols.

Legal requirements in New Zealand

Under the Financial Markets Conduct Act 2013, asset managers must hold appropriate licenses from the Financial Markets Authority (FMA) and comply with conduct obligations. Your agreement must include mandatory disclosure statements about the manager's qualifications, experience, and any conflicts of interest. Anti-money laundering requirements under the AML/CFT Act 2009 necessitate client verification procedures and ongoing monitoring obligations. The agreement must comply with the Contract and Commercial Law Act 2017 regarding contract formation and terms. Privacy Act 2020 compliance is essential for handling your personal information. The Financial Service Providers Act 2008 requires the manager to be registered and belong to an approved dispute resolution scheme. Your agreement should reference these regulatory requirements and include provisions for ongoing compliance monitoring and reporting to ensure legal validity and enforceability.