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Asset Management Agreement for Singapore

Asset Management Agreement Template for Singapore

This document is a comprehensive agreement governed by Singapore law that establishes the terms and conditions under which an asset manager will manage a client's investment portfolio. It complies with MAS regulations and the Securities and Futures Act, detailing investment objectives, strategies, fees, reporting requirements, and risk management protocols. The agreement includes specific provisions for Singapore's regulatory environment and incorporates necessary compliance elements for asset management services in the jurisdiction.

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What is a Asset Management Agreement?

An Asset Management Agreement is essential when engaging professional investment services in Singapore. This document establishes the legal framework for the relationship between asset managers and their clients, whether institutional or individual investors. It must comply with Singapore's regulatory requirements, particularly those set by the Monetary Authority of Singapore (MAS) and the Securities and Futures Act. The agreement covers crucial aspects including investment mandate, risk parameters, fee structures, reporting obligations, and fiduciary responsibilities, while incorporating specific provisions required under Singapore law.

What sections should be included in a Asset Management Agreement?

1. Parties: Details of the asset manager and client

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Authority: Scope of asset manager's appointment and powers

5. Investment Objectives and Strategy: Agreed investment approach and limitations

6. Services: Detailed description of asset management services to be provided

7. Investment Powers and Restrictions: Specific powers granted to the asset manager and any limitations

8. Fees and Expenses: Management fees, performance fees, and other charges

9. Reporting Requirements: Frequency and content of reports to client

10. Representations and Warranties: Standard and specific warranties from both parties

11. Term and Termination: Duration and termination provisions

12. Confidentiality: Obligations regarding confidential information

13. Indemnification: Mutual indemnification provisions

14. Governing Law and Jurisdiction: Choice of law and dispute resolution provisions

What sections are optional to include in a Asset Management Agreement?

1. Custody Arrangements: Provisions for custody services when assets are held by a third-party custodian

2. Performance Guarantees: Specific performance targets or benchmarks when agreed with client

3. Foreign Investment Provisions: Rules and procedures for overseas investments when applicable

4. Delegation: Provisions for delegation of services to third parties when permitted

5. Force Majeure: Provisions dealing with extraordinary events affecting performance

What schedules should be included in a Asset Management Agreement?

1. Schedule 1 - Investment Guidelines: Detailed investment parameters and restrictions

2. Schedule 2 - Fee Schedule: Detailed breakdown of all fees and charges

3. Schedule 3 - Authorized Persons: List of individuals authorized to give instructions

4. Schedule 4 - Risk Disclosure Statement: Mandatory risk warnings and disclosures

5. Schedule 5 - Reporting Templates: Format of periodic reports to be provided

6. Schedule 6 - Compliance Requirements: Specific regulatory and compliance obligations

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 | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions






























Clauses






























Industries

Securities and Futures Act (SFA): Primary legislation governing securities, futures, and fund management activities in Singapore. Establishes licensing requirements and regulatory framework for asset managers.

Financial Advisers Act (FAA): Regulates financial advisory services in Singapore, including requirements for providing investment advice and marketing of investment products.

Companies Act: Fundamental legislation governing corporate entities in Singapore, relevant for corporate structure and governance requirements.

Trust Companies Act: Regulates trust business activities and trust companies in Singapore, particularly relevant if trust structures are involved in asset management.

MAS Guidelines: Regulatory guidelines issued by the Monetary Authority of Singapore providing detailed requirements for asset management operations.

Code on Collective Investment Schemes: Specific regulations governing the establishment and management of collective investment schemes in Singapore.

AML/CFT Regulations: Anti-Money Laundering and Countering the Financing of Terrorism regulations requiring specific due diligence and monitoring procedures.

Personal Data Protection Act (PDPA): Governs the collection, use, and disclosure of personal data, requiring specific privacy protection measures.

GST Act: Tax legislation relevant for fee structures and financial transactions in asset management services.

CMS License Requirements: Capital Markets Services licensing requirements for conducting regulated activities under the SFA.

Common Reporting Standard (CRS): International standard for automatic exchange of financial account information, requiring specific reporting procedures.

FATCA Requirements: US Foreign Account Tax Compliance Act requirements applicable when dealing with US persons or entities.

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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