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Fund Distribution Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Fund Distribution Agreement

"Need a Fund Distribution Agreement for our UAE-based Islamic investment company to appoint a local bank as non-exclusive distributor of our Shariah-compliant mutual funds in Dubai and Abu Dhabi, with distribution to commence from March 2025."

Document background
The Fund Distribution Agreement is a critical document used to establish and regulate the relationship between investment fund providers and their distribution partners in the United Arab Emirates. This agreement is essential for any entity seeking to distribute investment funds in the UAE market, whether through mainland UAE, DIFC, or ADGM jurisdictions. It must comply with SCA Decision No. 3/R.M of 2017 and other relevant UAE financial regulations, including specific requirements for fund marketing, investor protection, and anti-money laundering compliance. The agreement covers distribution rights, territories, regulatory obligations, operational procedures, fee structures, and reporting requirements, while accounting for UAE-specific market practices and regulatory frameworks.
Suggested Sections

1. Parties: Identification of the Fund Manager/Provider and Distributor, including their regulatory status and authorizations

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

3. Definitions: Key terms used throughout the agreement, including regulatory and technical terms specific to UAE market

4. Appointment and Scope: Terms of appointment, exclusivity/non-exclusivity, and territorial scope of distribution rights

5. Regulatory Compliance: Obligations regarding UAE regulatory requirements, including SCA, DFSA or FSRA requirements as applicable

6. Distribution Services: Detailed description of authorized distribution activities and service levels

7. Marketing and Promotion: Requirements and restrictions for marketing funds in UAE, including material approval process

8. Subscription and Redemption Process: Procedures for handling investor subscriptions, redemptions, and related documentation

9. Fees and Commission: Commission structure, payment terms, and calculation methods

10. Anti-Money Laundering: AML/KYC obligations and procedures specific to UAE requirements

11. Representations and Warranties: Standard and specific warranties regarding regulatory status, authority, and compliance

12. Record Keeping and Reporting: Requirements for maintaining records and providing reports to both parties and regulators

13. Confidentiality: Provisions for handling confidential information and data protection compliance

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

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

Optional Sections

1. Local Agent Requirements: Required if distribution involves local UAE agents under Commercial Agency Law

2. Online Distribution: Include if distribution will occur through digital platforms

3. Shariah Compliance: Required if distributing Islamic funds or operating under Shariah principles

4. Sub-Distribution Rights: Include if distributor is permitted to appoint sub-distributors

5. Customer Complaints: Detailed procedures for handling customer complaints if required by specific regulatory framework

6. Training Requirements: Include if specific training is required for distribution staff

7. Performance Targets: Optional section for including specific distribution targets and related incentives

Suggested Schedules

1. Schedule 1 - Fund List: Details of funds approved for distribution, including key features and risk levels

2. Schedule 2 - Fee Schedule: Detailed commission structures, calculations, and payment terms

3. Schedule 3 - Territory: Detailed description of authorized distribution territories and any restrictions

4. Schedule 4 - Operating Procedures: Detailed procedures for subscriptions, redemptions, and reporting

5. Schedule 5 - Marketing Guidelines: Specific requirements and procedures for marketing approval

6. Schedule 6 - Compliance Procedures: Detailed AML/KYC procedures and compliance requirements

7. Appendix A - Required Documentation: Templates and forms for investor documentation

8. Appendix B - Contact Details: Key contacts for both parties for various functions

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

Islamic Finance

Fund Administration

Professional Services

Regulatory Compliance

Relevant Teams

Legal

Compliance

Distribution

Sales

Operations

Risk Management

Marketing

Business Development

Product Management

Investment Management

Regulatory Affairs

Client Services

Fund Administration

Relevant Roles

Chief Executive Officer

Chief Compliance Officer

Head of Distribution

Legal Counsel

Compliance Manager

Distribution Manager

Sales Director

Relationship Manager

Fund Manager

Product Manager

Operations Manager

Risk Manager

Marketing Director

Business Development Manager

Investment Officer

Regulatory Affairs 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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