Portfolio management contracts require written agreements and prescribed disclosures before a manager handles client funds. Regulation 14 mandates a written contractual agreement between portfolio manager and client before managing funds, specifying investment objectives, restrictions, instruments, tenure, withdrawal and termination terms, risks, fees (including for outsourced services), custody, audit and reporting terms, and a liability cap for discretionary mandates. The portfolio manager must deliver a Disclosure Document and Form C before agreement execution; the Disclosure Document must disclose fees, portfolio risks, related party transactions, performance (with a weighted average method for discretionary managers) and audited financials, be certified by an independent chartered accountant, and be filed with the Board before circulation and periodically thereafter.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Portfolio management contracts require written agreements and prescribed disclosures before a manager handles client funds.
Regulation 14 mandates a written contractual agreement between portfolio manager and client before managing funds, specifying investment objectives, restrictions, instruments, tenure, withdrawal and termination terms, risks, fees (including for outsourced services), custody, audit and reporting terms, and a liability cap for discretionary mandates. The portfolio manager must deliver a Disclosure Document and Form C before agreement execution; the Disclosure Document must disclose fees, portfolio risks, related party transactions, performance (with a weighted average method for discretionary managers) and audited financials, be certified by an independent chartered accountant, and be filed with the Board before circulation and periodically thereafter.
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