The UCITS and AIFMD regimes set out a number of activities which a fund management company is responsible for and is required to undertake. A fund management company may engage third parties to provide assistance with the performance of certain tasks on a day-to-day basis. The Fund Management Company Guidance states that where this happens, the division of responsibilities and tasks should be clearly documented.
The purpose of the CP86 Template Material Contract – Template Amendment Fund Administration Agreement is to clearly document the tasks which the Fund Management Company is engaging its delegate fund administrator to carry out.
The tasks to be carried out are listed in annexes to the amendment agreement. The annexes will also contain details of the (i) frequency of reporting and (ii) parameters for immediate escalation from delegates to Designated Persons. As such, the CP86 Template Material Contract – Template Amendment Fund Administration Agreement are a key part of the reporting framework for the fund management company.
How to use this template
This is a template amendment fund administration agreement which amends an existing fund administration agreement. The amendments being made are directly linked to the provisions of the Fund Management Company Guidance, the UCITS Regulations 2011 and the AIFM Regulations 2013.
The template amendment agreement contains annexes which list the tasks that the delegate is being engaged to carry out. Each annex is divided into 3 parts. Part 1 sets out provisions which relate to all fund management companies. Parts 2 and 3 set out additional tasks that must be carried out specifically for AIFMs or UCITS management companies respectively. Parts 2 and 3 are also sub-divided so that Part 2A/3A sets out tasks that relate to the investment funds under management (e.g. carrying out the investment strategy) whereas Part 2B/3B sets out tasks which relate to the fund management company itself (e.g. ensuring minimum capital requirements are met).