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Fund Distribution Agreement Template for Germany

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Key Requirements PROMPT example:

Fund Distribution Agreement

"I need a Fund Distribution Agreement under German law for my FinTech company to distribute UCITS funds through our digital platform to retail investors in Germany and Austria, with specific provisions for online marketing and automated KYC processes, targeted to launch in March 2025."

Document background
The Fund Distribution Agreement is essential for asset managers and financial institutions engaging in fund distribution activities in Germany. This document establishes the legal framework for fund distribution relationships, ensuring compliance with German regulatory requirements including the KAGB, KWG, and WpHG, as well as relevant EU regulations. It is typically used when a fund management company wants to appoint a distributor to market and sell their investment funds to investors in specified territories. The agreement covers crucial aspects such as distribution rights, regulatory compliance, operational procedures, fee arrangements, and risk allocation. Given the highly regulated nature of fund distribution in Germany, the agreement must carefully address various regulatory obligations, including investor protection, disclosure requirements, and anti-money laundering provisions.
Suggested Sections

1. Parties: Identification of the fund company/management company and distributor, including regulatory status and contact details

2. Background: Context of the agreement, including brief description of the funds and distribution arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope: Appointment of distributor and scope of distribution rights, including territory and customer segments

5. Regulatory Compliance: Obligations regarding regulatory compliance, including KYC, AML, and investor protection requirements

6. Distribution Services: Detailed description of distribution services, including marketing, client onboarding, and reporting

7. Fees and Commission: Structure and calculation of distribution fees, commission, and payment terms

8. Representations and Warranties: Key representations and warranties from both parties

9. Compliance with Laws: Obligations to comply with applicable laws, including KAGB, KWG, and WpHG

10. Record Keeping and Reporting: Requirements for maintaining records and providing reports

11. Confidentiality and Data Protection: Confidentiality obligations and GDPR compliance requirements

12. Term and Termination: Duration of agreement and termination provisions

13. Liability and Indemnification: Allocation of liability and indemnification obligations

14. Final Provisions: Governing law, jurisdiction, and standard boilerplate provisions

Optional Sections

1. Online Distribution: Specific provisions for online/digital distribution channels, including website requirements and digital onboarding

2. Sub-Distributor Arrangements: Terms governing appointment and oversight of sub-distributors

3. White Labeling: Provisions for white labeling arrangements if distributor will use their own branding

4. Investment Advisory Services: Additional terms if distributor provides investment advisory services

5. Local Registration Requirements: Specific provisions for local registration or notification requirements in different jurisdictions

6. Performance Targets: Inclusion of specific sales targets and related incentives or consequences

7. Training Requirements: Specific training obligations for distributor's sales staff

Suggested Schedules

1. Schedule 1 - Funds: List of funds covered by the agreement, including key details and regulatory status

2. Schedule 2 - Fee Schedule: Detailed fee structure, commission rates, and calculation methods

3. Schedule 3 - Distribution Territory: Detailed description of authorized distribution territory and any restrictions

4. Schedule 4 - Operational Procedures: Detailed operational procedures including subscription, redemption, and reporting processes

5. Schedule 5 - Marketing Guidelines: Guidelines for marketing activities and approval procedures

6. Schedule 6 - Compliance Procedures: Detailed compliance procedures including KYC and AML requirements

7. Schedule 7 - Contact Details: Key contact persons and escalation procedures

8. Appendix A - Required Documentation: List of required documentation for customer onboarding and compliance

9. Appendix B - Reporting Templates: Standard templates for required reports and notifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 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

Asset Management

Banking

Financial Services

Investment Management

Wealth Management

Private Banking

Insurance

FinTech

Professional Services

Securities Services

Relevant Teams

Legal

Compliance

Distribution

Sales

Product Management

Risk Management

Operations

Client Services

Business Development

Investment Management

Fund Administration

Marketing

Senior Management

Relevant Roles

Head of Distribution

Legal Counsel

Compliance Officer

Head of Sales

Fund Manager

Relationship Manager

Product Manager

Risk Manager

Operations Manager

Business Development Director

Chief Executive Officer

Chief Operating Officer

Head of Legal

Head of Compliance

Distribution Director

Sales Director

Investment Officer

Client Service Manager

Industries









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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