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Money Management Contract Template for England and Wales

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Key Requirements PROMPT example:

Money Management Contract

"I need a Money Management Contract for a high-net-worth individual client who wants active portfolio management with quarterly performance reviews, starting from March 2025, with specific investment restrictions on cryptocurrency and emerging markets."

Document background
The Money Management Contract is essential for establishing a formal investment management relationship between professional money managers and their clients in England and Wales. It is commonly used when individuals or institutions seek professional management of their investment portfolios. The contract addresses crucial elements including investment strategy, risk management, fee structures, and reporting requirements while ensuring compliance with FCA regulations and UK financial services legislation. This document provides legal protection for both parties and clearly defines the scope of services, responsibilities, and expectations in the investment management relationship.
Suggested Sections

1. Parties: Identification of the money manager and client, including registration details and addresses

2. Background: Context of the agreement and brief overview of services to be provided

3. Definitions: Key terms used throughout the agreement

4. Services: Detailed description of money management services to be provided

5. Authority and Discretion: Scope of manager's authority to make investment decisions

6. Fees and Charges: Management fees, performance fees, and other applicable charges

7. Reporting and Communications: Frequency and format of financial reports and client communications

8. Obligations and Responsibilities: Duties of both parties including compliance requirements

9. Risk Disclosures: Mandatory risk warnings and investment risk explanations

10. Termination: Conditions and process for ending the agreement

Optional Sections

1. Investment Strategy: Specific investment approach and restrictions when client requires specific investment parameters or restrictions

2. Performance Benchmarks: Agreed performance metrics and targets when specific performance measurements are required

3. Third-Party Arrangements: Details of custodians, brokers, or other service providers when external service providers are involved

4. Client Categorization: Classification of client under FCA rules when dealing with retail or professional clients

Suggested Schedules

1. Fee Schedule: Detailed breakdown of all fees and charges

2. Investment Policy Statement: Detailed investment objectives and constraints

3. Risk Profile Assessment: Client's risk tolerance evaluation

4. Authorized Persons: List of individuals authorized to give instructions

5. Service Level Agreement: Detailed service standards and response times

6. Compliance Documentation: Required regulatory forms and disclosures

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
Relevant Teams
Relevant Roles
Industries

Financial Services and Markets Act 2000 (FSMA): Primary legislation governing financial services in the UK, establishing regulatory framework and requirements for financial activities

Financial Services Act 2012: Amended FSMA and established the FCA and PRA as primary financial regulators

Financial Services and Markets Act 2000 (Regulated Activities) Order 2001: Defines which activities require FCA authorization and regulation

FCA Regulations: Detailed rules and guidelines from the Financial Conduct Authority governing conduct in financial services

PRA Requirements: Prudential regulations ensuring financial stability and proper risk management

COBS Rules: Conduct of Business Sourcebook rules detailing how firms should interact with clients

Money Laundering Regulations 2017: Requirements for preventing and detecting money laundering in financial services

Proceeds of Crime Act 2002: Legislation dealing with money laundering and proceeds of criminal conduct

Terrorism Act 2000: Legislation concerning terrorist financing and related financial restrictions

UK GDPR: Data protection and privacy regulations for processing personal information

Data Protection Act 2018: UK's implementation of data protection requirements, complementing UK GDPR

Consumer Rights Act 2015: Key consumer protection legislation establishing rights and business obligations

Consumer Protection from Unfair Trading Regulations 2008: Protects consumers from unfair commercial practices and misleading actions

Unfair Terms in Consumer Contracts Regulations 1999: Protects consumers against unfair standard terms in contracts

Common Law Contract Principles: Established legal principles governing contract formation, terms, and enforcement

Misrepresentation Act 1967: Governs false or misleading statements inducing contract formation

MiFID II (UK Implementation): Regulations governing financial instruments and improving protections for investors

Investment Managers Association Regulations: Industry-specific guidelines and standards for investment management

Alternative Dispute Resolution for Consumer Disputes Regulations 2015: Framework for resolving consumer disputes outside of court

Financial Services and Markets Act 2000 (Rights of Action) Regulations 2001: Establishes private rights of action for breaches of financial services rules

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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