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The Investment Mandate Agreement is a critical document used in South African financial services to formalize the relationship between investment managers and their clients. It is essential when a client wishes to delegate investment decision-making authority to a professional investment manager. The agreement must comply with the FAIS Act, Financial Sector Regulation Act, and other relevant South African financial legislation. This document typically includes comprehensive details about investment strategy, risk management, fee structures, reporting requirements, and regulatory compliance measures. It's particularly important for institutional investors, high-net-worth individuals, and entities requiring professional portfolio management services. The Investment Mandate Agreement serves as the primary governing document for the ongoing investment management relationship and provides legal protection for both parties while ensuring regulatory compliance.

1. Parties: Identification of the investment manager and the client, including registration details and FSCA license numbers

2. Background: Context of the agreement, including client's intention to appoint the investment manager and manager's qualifications

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Appointment and Authority: Formal appointment of the investment manager and scope of discretionary authority

5. Investment Objectives and Strategy: Agreed investment objectives, strategy, and any specific investment restrictions

6. Risk Disclosures: Mandatory risk warnings and acknowledgments as required by FAIS Act

7. Services and Obligations: Detailed description of services to be provided and obligations of the investment manager

8. Client's Obligations: Client's responsibilities including providing accurate information and maintaining minimum investment amounts

9. Fees and Charges: Detailed fee structure, including management fees, performance fees, and other charges

10. Reporting and Valuations: Frequency and content of reports, valuation methodology, and performance measurement

11. Confidentiality and Data Protection: Confidentiality obligations and compliance with POPIA

12. Risk Management and Compliance: Risk management procedures and regulatory compliance measures

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

14. Liability and Indemnification: Extent of manager's liability and mutual indemnifications

15. Dispute Resolution: Process for resolving disputes, including mediation and arbitration provisions

16. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law