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The Discretionary Management Agreement is essential for establishing professional investment management relationships in Denmark. It is used when a client wishes to delegate investment decision-making authority to a professional manager regulated under Danish financial law. The agreement must comply with the Danish Financial Business Act, MiFID II regulations as implemented in Danish law, and other relevant financial services legislation. This document outlines the scope of the manager's authority, investment guidelines, risk parameters, fee structures, and reporting requirements. It includes mandatory regulatory disclosures, client categorization under MiFID II, and specific provisions for client protection. The agreement is particularly important for financial institutions offering discretionary portfolio management services and must be tailored to reflect both the client's investment objectives and regulatory requirements.

1. Parties: Identification of the investment manager and the client, including registration details and contact information

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 Scope of Authority: Formal appointment of the manager and detailed scope of discretionary management services

5. Investment Objectives and Restrictions: Client's investment objectives, risk profile, and any specific investment restrictions

6. Manager's Duties and Responsibilities: Detailed obligations of the manager, including compliance with regulations and fiduciary duties

7. Client Classification and Suitability: Classification of the client under MiFID II and confirmation of service suitability

8. Risk Disclosures: Mandatory risk warnings and disclosures required by Danish law and MiFID II

9. Fees and Expenses: Detailed fee structure, calculation methods, and payment terms

10. Reporting and Communications: Frequency and content of portfolio reports, valuation methods, and communication procedures

11. Conflicts of Interest: Disclosure and management of potential conflicts of interest

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

13. Term and Termination: Duration of agreement and circumstances for termination

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

15. Governing Law and Jurisdiction: Confirmation of Danish law governance and jurisdiction for disputes