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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."
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
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
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
Financial Services
Banking
Investment Management
Asset Management
Wealth Management
Securities Trading
Islamic Finance
Fund Administration
Professional Services
Regulatory Compliance
Legal
Compliance
Distribution
Sales
Operations
Risk Management
Marketing
Business Development
Product Management
Investment Management
Regulatory Affairs
Client Services
Fund Administration
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
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