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Investment Framework Agreement Template for England and Wales

An Investment Framework Agreement under English and Welsh law establishes the foundation for ongoing investment relationships between parties, setting out the terms, conditions, and processes for making investments. It covers key aspects such as investment criteria, decision-making processes, governance structures, and reporting requirements. The agreement is designed to comply with UK financial services regulations, including FCA requirements and relevant provisions of the Financial Services and Markets Act 2000.

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What is a Investment Framework Agreement?

The Investment Framework Agreement is utilized when parties wish to establish a structured approach to making multiple investments over time. This comprehensive agreement, governed by English and Welsh law, sets out the parameters for investment activities, including investment criteria, approval processes, governance structures, and ongoing management responsibilities. It is particularly relevant for institutional investors, fund managers, and investment advisors operating in the UK market, providing a robust legal framework that ensures compliance with UK financial services regulations while maintaining flexibility for specific investment opportunities.

What sections should be included in a Investment Framework Agreement?

1. Parties: Identification and details of all contracting parties

2. Background: Context and purpose of the investment framework

3. Definitions: Key terms used throughout the agreement

4. Investment Structure: Framework for how investments will be made and structured

5. Investment Process: Procedures for making and approving investments

6. Representations and Warranties: Standard assurances from all parties

7. Governance: Decision-making processes and control mechanisms

8. Term and Termination: Duration and termination provisions

What sections are optional to include in a Investment Framework Agreement?

1. Co-Investment Rights: Rights of parties to participate in future investments - include when multiple investors are involved

2. Investment Restrictions: Limitations on investment types or sectors - include when specific investment parameters need to be set

3. Advisory Services: Terms for additional advisory services - include when investment advisory services are part of the arrangement

What schedules should be included in a Investment Framework Agreement?

1. Investment Policy: Detailed investment criteria and guidelines

2. Fee Structure: Details of management fees and carried interest

3. Reporting Requirements: Format and frequency of investment reports

4. Due Diligence Requirements: Standard due diligence procedures

5. Form of Investment Agreement: Template for individual investment documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Framework Agreement

Cost

Free to use

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