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Sub Management Agreement for the United States

Sub Management Agreement Template for United States

A Sub Management Agreement is a legal contract governed by U.S. federal and state laws that establishes the terms under which a primary manager delegates certain management responsibilities to a sub-manager. This document outlines the scope of delegated authority, duties, compensation, reporting requirements, and compliance obligations while ensuring adherence to relevant regulatory frameworks including the Investment Advisers Act and state securities laws.

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What is a Sub Management Agreement?

The Sub Management Agreement is utilized when an entity with primary management responsibilities needs to delegate specific functions to another qualified party. This arrangement is common in investment management, real estate, and other sectors where specialized expertise is required. The document addresses key aspects including scope of authority, compensation, compliance requirements, and reporting obligations, while ensuring alignment with U.S. federal and state regulations. It's particularly important for maintaining clear accountability and regulatory compliance in delegated management structures.

What sections should be included in a Sub Management Agreement?

1. Parties: Identification of the primary manager and sub-manager

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Appointment and Authority: Scope of sub-manager's appointment and delegated authority

5. Duties and Responsibilities: Detailed obligations of the sub-manager

6. Fees and Expenses: Compensation structure and cost allocation

7. Term and Termination: Duration and termination provisions

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

1. Performance Standards: Specific metrics and benchmarks for measuring sub-manager performance

2. ESG Requirements: Environmental, social, and governance obligations for investment decisions

3. Foreign Investment Provisions: Requirements and compliance obligations for international investments

What schedules should be included in a Sub Management Agreement?

1. Schedule of Services: Detailed scope of services to be provided by the sub-manager

2. Fee Schedule: Detailed breakdown of fees and payment terms

3. Investment Guidelines: Specific investment restrictions and requirements

4. Reporting Requirements: Format and frequency of required reports

5. Key Personnel: List of key team members and their roles

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

United States

Publisher

Genie AI

Cost

Free to use
Clauses






















Industries

Investment Advisers Act 1940: Federal law that regulates investment advisers and their activities, crucial for sub-management agreements involving investment management services

Investment Company Act 1940: Federal law governing mutual funds and investment companies, essential if the sub-management agreement involves mutual fund management

Securities Exchange Act 1934: Federal law regulating secondary trading of securities and establishing the SEC, relevant for securities-related management activities

Securities Act 1933: Federal law governing the initial offering and sale of securities, important for sub-management agreements involving securities

Dodd-Frank Act: Comprehensive financial reform legislation affecting financial services and management, including requirements for investment advisers

ERISA: Employee Retirement Income Security Act - crucial if the sub-management agreement involves pension fund management

Blue Sky Laws: State-specific securities regulations that must be considered alongside federal securities laws

State Corporate Laws: State-specific laws governing corporate formation, operation, and management

AML Regulations: Anti-Money Laundering regulations requiring specific compliance procedures and reporting

KYC Requirements: Know Your Customer requirements for verifying and monitoring client identities and activities

FATCA: Foreign Account Tax Compliance Act requirements for reporting foreign financial accounts and assets

State Privacy Laws: State-specific regulations governing data protection and privacy requirements

FINRA Rules: Financial Industry Regulatory Authority rules governing broker-dealers and investment activities

Fair Labor Standards Act: Federal law establishing standards for employment relationships, relevant for management structure and staffing

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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