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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."
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
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
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
Financial Services
Banking
Investment Management
Wealth Management
Asset Management
Corporate Services
Professional Services
Insurance
Private Equity
Pension Management
Family Office Services
Islamic Finance
Legal
Finance
Compliance
Risk Management
Investment Management
Portfolio Management
Client Relations
Treasury
Operations
Islamic Banking
Wealth Management
Asset Management
Due Diligence
Financial Advisory
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
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