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Fund Distribution Agreement Template for Pakistan

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Key Requirements PROMPT example:

Fund Distribution Agreement

"I need a Fund Distribution Agreement under Pakistani law for my asset management company to appoint an exclusive distributor for our Shariah-compliant mutual funds in the Sindh province, with the agreement to commence on March 1, 2025."

Document background
The Fund Distribution Agreement is a crucial document used in the Pakistani financial services sector when an asset management company wishes to appoint a distributor to market and sell its investment funds. This agreement is essential for establishing the framework of the distribution relationship, ensuring compliance with Pakistani regulatory requirements, particularly those set by the Securities and Exchange Commission of Pakistan (SECP). The document covers vital aspects such as distribution rights, territorial scope, regulatory compliance obligations, compensation structures, and operational procedures. It is specifically designed to meet the requirements of Pakistani securities laws, including the Securities Act 2015 and various SECP regulations, while protecting both parties' interests and ensuring proper fund distribution practices in the Pakistani market.
Suggested Sections

1. Parties: Identification of the Fund Company/Asset Manager and the Distributor, including their registration details and regulatory licenses

2. Background: Context of the agreement, including brief description of the funds to be distributed and the parties' qualifications

3. Definitions: Definitions of key terms used throughout the agreement, including regulatory terms specific to Pakistani law

4. Appointment and Scope: Terms of the distributor's appointment, territory coverage, and nature of the distribution relationship

5. Regulatory Compliance: Obligations to comply with SECP regulations, AML requirements, and other applicable laws

6. Distributor's Obligations: Core responsibilities including marketing, client onboarding, KYC procedures, and reporting

7. Fund Company's Obligations: Support, training, materials, and information to be provided to the distributor

8. Commission Structure: Details of compensation, including upfront and trailing commissions

9. Marketing and Promotion: Guidelines for marketing activities and approval processes for promotional materials

10. Reporting Requirements: Regular reporting obligations, including frequency and content of reports

11. Confidentiality: Protection of confidential information and trade secrets

12. Data Protection: Handling of customer data and compliance with data protection laws

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

14. Post-Termination Obligations: Duties and restrictions following agreement termination

15. Indemnification: Mutual indemnification provisions for losses and claims

16. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

17. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Exclusivity: Used when the distributor is granted exclusive rights in specific territories

2. Online Distribution: Include when distribution involves digital platforms or online channels

3. Sub-Distributor Rights: Required when the distributor is permitted to appoint sub-distributors

4. Performance Targets: Include when specific sales targets or KPIs are part of the agreement

5. International Distribution: Required for cross-border distribution activities

6. White Labeling: Include when the distributor is allowed to rebrand the funds

7. Training Requirements: Detailed training obligations when specific certification is required

8. Insurance Requirements: Specific insurance obligations beyond standard coverage

Suggested Schedules

1. Schedule 1 - Fund Products: List and details of funds approved for distribution

2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates and calculation methods

3. Schedule 3 - Territory Definition: Specific geographical areas covered by the agreement

4. Schedule 4 - Operational Procedures: Detailed procedures for subscription, redemption, and customer service

5. Schedule 5 - Reporting Templates: Standard formats for required reports and notifications

6. Schedule 6 - Marketing Guidelines: Specific requirements and restrictions for marketing activities

7. Schedule 7 - Compliance Procedures: Detailed KYC and AML procedures

8. Appendix A - Required Licenses: Copies of regulatory licenses and registrations

9. Appendix B - Service Level Agreement: Specific performance standards and response times

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

Asset Management

Wealth Management

Securities Trading

Insurance

Financial Technology

Professional Services

Investment Advisory

Relevant Teams

Legal

Compliance

Distribution

Sales

Business Development

Operations

Risk Management

Product Management

Marketing

Investment Management

Regulatory Affairs

Partnership Management

Client Services

Finance

Relevant Roles

Chief Executive Officer

Chief Legal Officer

Head of Distribution

Compliance Officer

Legal Counsel

Distribution Manager

Sales Director

Relationship Manager

Business Development Manager

Operations Manager

Risk Manager

Product Manager

Marketing Director

Investment Manager

Fund Manager

Regulatory Affairs Manager

Channel Manager

Partnership Manager

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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