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Financial Management Agreement Template for Pakistan

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Key Requirements PROMPT example:

Financial Management Agreement

"I need a Financial Management Agreement under Pakistani law for a tech startup company appointing an investment management firm to manage their surplus funds of PKR 50 million, with specific provisions for Islamic finance compliance and quarterly performance reviews starting March 2025."

Document background
The Financial Management Agreement serves as a crucial legal instrument in Pakistan's financial services sector, establishing a formal relationship between professional financial managers and their clients. This document is essential when engaging professional financial management services for investment portfolios, assets, or funds, whether for individual or institutional clients. It must comply with Pakistani financial regulations, including requirements from the Securities and Exchange Commission of Pakistan (SECP), State Bank of Pakistan guidelines, and relevant banking laws. The agreement typically covers comprehensive service scope, investment strategies, risk management approaches, fee structures, reporting obligations, and regulatory compliance requirements. It can be adapted for both conventional and Islamic financial management services, making it versatile for Pakistan's dual banking system. The Financial Management Agreement is particularly important for protecting both parties' interests while ensuring transparent and professional financial management services within the Pakistani legal framework.
Suggested Sections

1. Parties: Identification of the Financial Manager and the Client with full legal names and addresses

2. Background: Context of the agreement, including the Financial Manager's qualifications and Client's objectives

3. Definitions: Detailed definitions of technical terms, financial concepts, and key phrases used in the agreement

4. Scope of Services: Comprehensive description of financial management services to be provided

5. Appointment and Authority: Formal appointment of the Financial Manager and extent of their authority

6. Investment Objectives and Guidelines: Client's investment objectives, risk tolerance, and investment restrictions

7. Fees and Expenses: Detailed fee structure, calculation method, and payment terms

8. Reporting and Communication: Frequency and format of financial reports, meetings, and communication protocols

9. Representations and Warranties: Statements of fact and assurances from both parties

10. Duties and Responsibilities: Specific obligations of both the Financial Manager and the Client

11. Risk Disclosures: Detailed disclosure of investment and financial management risks

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

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

14. Indemnification: Mutual indemnification provisions and liability limitations

15. Governing Law and Jurisdiction: Specification of Pakistani law as governing law and jurisdiction for disputes

16. Miscellaneous Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Shariah Compliance: Required when offering Islamic financial management services, outlining compliance with Islamic financial principles

2. Foreign Investment Provisions: Include when managing international investments or dealing with foreign currency

3. Delegation of Authority: Required when the Financial Manager may need to delegate certain functions to third parties

4. Performance Benchmarks: Include when specific performance metrics or benchmarks are part of the agreement

5. Insurance Requirements: Additional section specifying required insurance coverage for higher-value portfolios

6. Custody Arrangements: Required when separate custody arrangements are needed for client assets

7. Digital Services: Include when offering online portfolio management or digital reporting services

8. Force Majeure: Optional expanded clause for specific market disruption events or circumstances

Suggested Schedules

1. Schedule A - Fee Schedule: Detailed breakdown of all fees, charges, and calculation methodologies

2. Schedule B - Investment Policy Statement: Detailed investment objectives, strategies, and restrictions

3. Schedule C - Authorized Persons: List of authorized representatives for both parties with specimen signatures

4. Schedule D - Reporting Requirements: Specific format and content requirements for various reports

5. Schedule E - Service Level Agreement: Detailed service standards and performance metrics

6. Appendix 1 - Risk Disclosure Statement: Comprehensive risk disclosures as required by Pakistani regulations

7. Appendix 2 - Compliance Requirements: Specific regulatory and compliance requirements applicable to the agreement

8. Appendix 3 - Operating Procedures: Detailed procedures for day-to-day operations and transactions

Authors

Alex Denne

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

Relevant legal definitions


























































Clauses


















































Relevant Industries

Financial Services

Banking

Investment Management

Wealth Management

Asset Management

Corporate Services

Professional Services

Insurance

Private Equity

Pension Management

Family Office Services

Islamic Finance

Relevant Teams

Legal

Finance

Compliance

Risk Management

Investment Management

Portfolio Management

Client Relations

Treasury

Operations

Islamic Banking

Wealth Management

Asset Management

Due Diligence

Financial Advisory

Relevant Roles

Chief Financial Officer

Financial Manager

Investment Manager

Portfolio Manager

Wealth Manager

Asset Manager

Financial Advisor

Investment Consultant

Compliance Officer

Legal Counsel

Risk Manager

Treasury Manager

Finance Director

Investment Analyst

Client Relationship Manager

Financial Controller

Fund Manager

Islamic Finance Specialist

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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