Portfolio management agreements must define fiduciary services, investment limits, client reporting, fees, liabilities, termination, and dispute resolution.
Portfolio manager-client agreements must define fiduciary services, discretionary and non-discretionary responsibilities, investment objectives, client restrictions, risk disclosures, custody, separate accounts, reporting and inspection rights. They must prohibit contractual changes without prior client consent and require transparent fee, expense and billing terms. Liability provisions must address negligence, wilful misfeasance and acts of intermediaries while limiting client liability to the investment amount. Agreements must also cover termination, death or disability, assignment, governing law, grievance redressal, dispute resolution and arbitration.
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