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Investment Advisor Contract for Indonesia

Investment Advisor Contract Template for Indonesia

This document is a comprehensive investment advisory agreement governed by Indonesian law, specifically regulated under the Financial Services Authority (OJK) framework. It establishes the legal relationship between an investment advisor and their client, outlining the scope of advisory services, fiduciary duties, fee structures, and compliance requirements in accordance with Indonesian financial regulations. The agreement incorporates mandatory risk disclosures, reporting obligations, and specific provisions required by OJK regulations while addressing client protection measures under Indonesian consumer protection laws.

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Investment Advisor Contract

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What is a Investment Advisor Contract?

The Investment Advisor Contract serves as the primary legal framework for investment advisory relationships in Indonesia, regulated under the supervision of the Financial Services Authority (OJK). This document is essential when establishing professional investment advisory services, whether for individual, institutional, or corporate clients. It must comply with Law No. 8 of 1995 on Capital Market and various OJK regulations, particularly OJK Regulation No. 25/POJK.04/2014 on Investment Advisor licensing. The contract should be used whenever an investment advisor begins a new client relationship, ensuring clear definition of services, responsibilities, regulatory compliance, risk disclosures, and fee arrangements. It provides crucial protection for both advisors and clients while meeting Indonesian regulatory requirements.

What sections should be included in a Investment Advisor Contract?

1. Parties: Identification of the investment advisor and client, including registration/license numbers and addresses

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

3. Definitions: Key terms used throughout the agreement, including regulatory terms from Indonesian financial regulations

4. Appointment and Scope of Services: Formal appointment of advisor and detailed description of investment advisory services to be provided

5. Advisor's Obligations and Responsibilities: Detailed listing of advisor's duties, including fiduciary obligations and compliance with Indonesian regulations

6. Client's Obligations and Responsibilities: Client's duties, including information provision and cooperation requirements

7. Representations and Warranties: Statements of fact and assurances from both parties, including regulatory compliance declarations

8. Fees and Payment Terms: Detailed fee structure, payment schedule, and expense arrangements

9. Confidentiality: Provisions for handling confidential information and data protection

10. Conflict of Interest: Procedures for identifying, disclosing, and managing conflicts of interest

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

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

13. Notices: Process for formal communications between parties

14. Governing Law and Dispute Resolution: Specification of Indonesian law governance and dispute resolution procedures

What sections are optional to include in a Investment Advisor Contract?

1. Non-Competition: Restrictions on advisor's ability to service competing clients - used when dealing with institutional clients or specialized investment strategies

2. Intellectual Property: Protection of proprietary investment strategies or analysis tools - included when advisor uses proprietary methodologies

3. Force Majeure: Provisions for unforeseen circumstances - important in volatile markets or uncertain conditions

4. Assignment: Rights to transfer the agreement - included for institutional clients or when advisor may undergo corporate changes

5. Marketing and Referrals: Terms for using client references or sharing referrals - included when marketing rights are important to either party

6. Sub-Advisory Arrangements: Terms for engaging sub-advisors - used when advisor may need to delegate certain specialized functions

What schedules should be included in a Investment Advisor Contract?

1. Schedule A - Investment Advisory Services: Detailed description of specific advisory services to be provided

2. Schedule B - Fee Schedule: Comprehensive breakdown of all fees, charges, and payment terms

3. Schedule C - Investment Policy Statement: Client's investment objectives, constraints, and guidelines

4. Schedule D - Risk Disclosure Statement: Mandatory risk disclosures required by Indonesian regulations

5. Appendix 1 - Advisor's Licenses and Registrations: Copies of relevant OJK licenses and registrations

6. Appendix 2 - Client Information Form: KYC documentation and client profile information

7. Appendix 3 - Reporting Templates: Format and frequency of performance and compliance reports

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions










































Clauses






































Relevant Industries

Financial Services

Banking

Investment Management

Wealth Management

Asset Management

Private Equity

Insurance

Pension Funds

Family Offices

Corporate Advisory

Real Estate Investment

Relevant Teams

Legal

Compliance

Risk Management

Investment Management

Client Relations

Operations

Research

Due Diligence

Portfolio Management

Wealth Management

Relevant Roles

Investment Advisor

Compliance Officer

Legal Counsel

Risk Manager

Portfolio Manager

Wealth Manager

Financial Planner

Investment Consultant

Chief Investment Officer

Client Relationship Manager

Operations Manager

Due Diligence Officer

Investment Research Analyst

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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