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Money Management Contract Template for Pakistan

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Key Requirements PROMPT example:

Money Management Contract

"I need a Money Management Contract for a Pakistani wealth management firm providing services to high-net-worth individuals, with specific provisions for both conventional and Islamic banking options, to be effective from March 2025."

Document background
The Money Management Contract is essential for establishing professional financial relationships in Pakistan's financial services sector. It is used when individuals, corporations, or institutions seek to engage professional money managers or financial institutions to manage their funds. The document must comply with Pakistani banking laws and regulations, including the Banking Companies Ordinance 1962, Anti-Money Laundering Act 2010, and relevant State Bank of Pakistan directives. It typically includes detailed provisions for investment strategies, risk management, fee structures, reporting requirements, and regulatory compliance. The contract can be customized to accommodate both conventional and Islamic banking principles, making it versatile for various financial arrangements in the Pakistani market.
Suggested Sections

1. Parties: Identification of the money manager and the client, including full legal names, addresses, and registration details if applicable

2. Background: Context of the agreement, including the client's desire to engage professional money management services and the manager's qualifications

3. Definitions: Key terms used throughout the agreement, including financial terms, investment categories, and regulatory references

4. Scope of Services: Detailed description of money management services to be provided, including investment strategies and limitations

5. Appointment and Authority: Formal appointment of the money manager and extent of their authority to manage funds

6. Investment Guidelines: Specific parameters for investments, including asset allocation, risk tolerance, and any restrictions

7. Fees and Compensation: Detailed fee structure, payment terms, and calculation methods

8. Reporting Requirements: Frequency and format of financial reports, performance updates, and account statements

9. Compliance Requirements: Obligations to comply with Pakistani laws, including anti-money laundering and banking regulations

10. Confidentiality: Protection of confidential information and client data

11. Risk Disclosures: Clear statements about investment risks and market uncertainties

12. Term and Termination: Duration of the agreement and conditions for termination

13. Dispute Resolution: Process for resolving disputes, including jurisdiction and applicable law

Optional Sections

1. Shariah Compliance: Required when the client requests Islamic banking principles to be followed in money management

2. Foreign Currency Management: Needed when the contract involves management of foreign currency investments

3. Digital Services: Required when online platforms or digital tools are used for money management

4. Sub-Advisory Services: Include when the money manager may engage other professional advisors

5. Performance Guarantees: Optional section for any guaranteed returns or performance metrics, if applicable

6. Insurance Coverage: Details of professional indemnity insurance when required by the client

Suggested Schedules

1. Schedule A - Fee Structure: Detailed breakdown of all fees, charges, and commission structures

2. Schedule B - Investment Policy Statement: Comprehensive outline of investment objectives, strategies, and constraints

3. Schedule C - Authorized Personnel: List of authorized individuals who can make decisions or give instructions

4. Schedule D - Reporting Format: Templates and formats for regular financial reports and statements

5. Appendix 1 - KYC Documentation: Required Know Your Customer documentation as per Pakistani regulations

6. Appendix 2 - Risk Disclosure Statement: Detailed risk warnings and acknowledgments

7. Appendix 3 - Compliance Procedures: Step-by-step procedures for ensuring regulatory compliance

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








































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Relevant Industries

Banking and Financial Services

Investment Management

Wealth Management

Corporate Services

Islamic Banking

Private Banking

Asset Management

Financial Technology

Professional Services

Family Offices

Relevant Teams

Legal

Compliance

Risk Management

Investment Management

Wealth Management

Operations

Client Services

Islamic Banking

Treasury

Portfolio Management

Financial Control

Private Banking

Relevant Roles

Investment Manager

Financial Advisor

Wealth Manager

Compliance Officer

Legal Counsel

Risk Manager

Portfolio Manager

Chief Investment Officer

Private Banking Manager

Relationship Manager

Financial Controller

Treasury Manager

Islamic Banking Specialist

Chief Financial Officer

Operations 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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