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The Discretionary Management Agreement is a crucial document used when a client wishes to delegate investment decision-making authority to a professional investment manager in Malaysia. It is particularly relevant for high-net-worth individuals, institutional investors, and corporate entities seeking professional portfolio management services. The agreement must comply with Malaysian regulatory requirements, particularly the Capital Markets and Services Act 2007 and Securities Commission guidelines. It comprehensively covers investment parameters, risk management, reporting obligations, fee structures, and operational procedures. This document is essential for establishing a clear fiduciary relationship between the investment manager and client, while ensuring compliance with Malaysian securities laws, anti-money laundering regulations, and data protection requirements. The agreement typically includes detailed schedules for investment guidelines, fee structures, and risk disclosures as required by Malaysian regulations.

1. Parties: Identification of the investment manager and client, including licensing details of the manager

2. Background: Context of the agreement and brief description of the discretionary management service

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

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

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

6. Investment Powers and Restrictions: Extent and limitations of manager's investment powers

7. Client Representations and Warranties: Client's confirmations regarding their status, capacity, and understanding

8. Manager Representations and Warranties: Manager's confirmations regarding licensing, capacity, and expertise

9. Custody Arrangements: Details of custody arrangements for client assets

10. Fees and Expenses: Management fees, performance fees, and other charges

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

12. Risk Disclosures: Mandatory risk warnings and disclosures

13. Compliance and AML Requirements: Compliance obligations including AML/CFT requirements

14. Confidentiality and Data Protection: Confidentiality obligations and personal data handling

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

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

17. General Provisions: Standard contractual provisions including notices, amendments, governing law