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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."
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
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
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
Financial Services
Banking
Investment Management
Asset Management
Wealth Management
Securities Trading
Insurance
Financial Technology
Professional Services
Investment Advisory
Legal
Compliance
Distribution
Sales
Business Development
Operations
Risk Management
Product Management
Marketing
Investment Management
Regulatory Affairs
Partnership Management
Client Services
Finance
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
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