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Fund Distribution Agreement
"I need a Fund Distribution Agreement for an online-only mutual fund distribution platform operating across India, with specific provisions for digital onboarding and robo-advisory services, to be effective from March 1, 2025."
1. Parties: Identification of the Fund House/AMC and the Distributor with complete details
2. Background: Context of the agreement, including the Fund House's authority to operate and Distributor's qualifications
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Scope: Terms of appointment and scope of distribution services
5. Rights and Obligations of the Distributor: Detailed responsibilities including marketing, client servicing, and compliance requirements
6. Rights and Obligations of the Fund House: Fund House's commitments, support services, and obligations
7. Compliance Requirements: Regulatory compliance, including SEBI regulations, AMFI guidelines, and KYC requirements
8. Commission Structure: Commission rates, calculation methods, and payment terms
9. Representations and Warranties: Standard and specific representations from both parties
10. Term and Termination: Duration of agreement and termination provisions
11. Confidentiality: Protection of confidential information and trade secrets
12. Indemnification: Mutual indemnification provisions and liability limitations
13. Governing Law and Jurisdiction: Applicable law and dispute resolution mechanisms
14. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignment
1. Digital Distribution Protocols: Specific provisions for online/digital distribution channels
2. Sub-distributor Arrangements: Terms for managing sub-distributor relationships if permitted
3. International Distribution: Additional requirements for cross-border distribution if applicable
4. Training and Certification: Specific requirements for distributor training and certification
5. Performance Metrics: Specific performance targets and evaluation criteria
6. Marketing Guidelines: Detailed marketing and branding requirements
7. Data Protection: Enhanced data protection and privacy provisions beyond standard confidentiality
1. Schedule A - Product List: List of funds/products approved for distribution
2. Schedule B - Commission Structure: Detailed commission rates, clawback provisions, and special incentives
3. Schedule C - Operational Procedures: Detailed procedures for order processing, reporting, and reconciliation
4. Schedule D - Compliance Checklist: Specific compliance requirements and documentation
5. Schedule E - Territory Definition: Geographical areas covered under the distribution rights
6. Appendix 1 - KYC Requirements: Detailed KYC and customer documentation requirements
7. Appendix 2 - Reporting Formats: Standard formats for periodic reporting and reconciliation
8. Appendix 3 - Marketing Materials Guidelines: Guidelines and approval process for marketing materials
Authors
Financial Services
Asset Management
Banking
Wealth Management
FinTech
Investment Services
Professional Services
Regulatory Compliance
Legal
Compliance
Distribution
Sales
Operations
Risk Management
Business Development
Product Management
Finance
Regulatory Affairs
Chief Executive Officer
Compliance Officer
Legal Counsel
Distribution Head
Sales Director
Relationship Manager
Business Development Manager
Risk Manager
Operations Manager
Regulatory Affairs Manager
Channel Partner Manager
Product Manager
Chief Financial Officer
Investment Advisor
Wealth Manager
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