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Brokerage / Securities Trading Client Agreement

Discretionary Investment Management Agreement

A discretionary investment management agreement between the investment manager, the broker and the client covering issues such as risk assessment, management and performance fees.

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Document Description

The Brokerage / Securities Trading Client Agreement is a legally binding document that outlines the terms and conditions between the broker, the investment manager, and the client. It is important because it establishes the relationship between the parties and sets out their rights and obligations. The agreement is entered into by the broker, the investment manager, and the client, who is the holder of the account. The investment manager is licensed to carry out asset management related regulated activities, while the broker is licensed to carry out securities dealing related regulated activities. The client has completed a risk assessment questionnaire and has agreed to engage the investment manager to manage the account on a discretionary basis. The agreement includes definitions and interpretations of key terms, such as account, account agreement, account value, authorisation, codes, governmental agency, currency, investment objective, investment restrictions, investments, minimum additional amount, minimum holding amount, minimum investment period, personal data policy, portfolio, risk assessment questionnaire, risk disclosure statement, securities, regulator, regulation, stock exchange, and trading day. The agreement appoints the investment manager as the investment manager of the client's account and outlines their duties and powers. It authorizes the investment manager to manage the portfolio on a discretionary basis, including buying, selling, and dealing in investments, and entering into contracts for differences and options. The agreement also addresses voting rights, other terms of services, deposits and withdrawals, fees and expenses, limitation of liability and indemnity, conflicts of interest, market rules, termination, confidentiality, no license, joint account, no partnership, no assignment, severability, entirety of agreement, independent legal advice, counterparts, prevalence, data protection, special terms as required by codes, risk disclosure statement, governing laws and jurisdiction.

How to use this document?

1. Read and understand the Brokerage / Securities Trading Client Agreement carefully.

2. Ensure that all the necessary information, such as the client's name, address, passport and ID number, account details, investment objective, and investment restrictions, are accurately provided.

3. Familiarize yourself with the definitions and interpretations of key terms used in the agreement.

4. Understand the duties and powers of the investment manager, including their authority to manage the portfolio on a discretionary basis.

5. Be aware of the voting rights and other terms of services provided by the investment manager.

6. Understand the procedures for making deposits and withdrawals from the account.

7. Review the management fees and administration fees, including the calculation of performance fees.

8. Be aware of the limitations of liability and indemnity for the investment manager, the broker, and their affiliates.

9. Understand the potential conflicts of interest and market rules that may apply.

10. Familiarize yourself with the termination provisions and the process for terminating the agreement.

11. Maintain confidentiality of the information acquired as a result of the agreement.

12. Seek independent legal advice if necessary.

13. Keep copies of the agreement and any related documents for future reference.

14. Comply with all applicable laws, regulations, and codes of conduct.

15. If you have any questions or concerns, contact the investment manager or the broker for clarification.

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