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The Fund Distribution Agreement is essential for establishing and regulating the relationship between investment fund providers and their distribution partners in South Africa. This document is used when a fund manager or investment company wants to appoint intermediaries to distribute their investment products to end investors. The agreement must comply with South African regulatory requirements, particularly the FAIS Act, FICA, and Collective Investment Schemes Control Act. It covers crucial aspects including distribution rights, regulatory compliance, commission structures, marketing guidelines, and operational procedures. The document is particularly important in the South African context due to specific regulatory requirements for financial intermediaries and the need to ensure proper consumer protection in financial services.

1. Parties: Identification of the fund provider/manager and the distributor, including their regulatory status and licenses

2. Background: Context of the agreement, including the nature of the funds and distribution arrangement

3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement, including regulatory and technical terms

4. Appointment and Scope: Terms of appointment of the distributor and scope of distribution rights

5. Regulatory Compliance: Obligations regarding FAIS Act, FICA, and other regulatory requirements

6. Distributor Obligations: Core responsibilities including marketing, client servicing, and reporting

7. Fund Provider Obligations: Support, information, and materials to be provided to the distributor

8. Fees and Commission: Commission structure, payment terms, and related financial arrangements

9. Compliance and Anti-Money Laundering: Specific AML/KYC requirements and compliance procedures

10. Marketing and Branding: Guidelines for marketing materials and use of intellectual property

11. Record Keeping: Requirements for maintaining records and documentation

12. Confidentiality and Data Protection: Provisions for handling confidential information and personal data under POPIA

13. Term and Termination: Duration of agreement and termination provisions

14. Post-Termination Obligations: Obligations and procedures following termination

15. General Provisions: Standard legal provisions including notices, amendments, and governing law