​​Private Funds or Provident Funds

1. Execution of Agreements for Management of Private funds or Provident Funds

1.1 Provisions for the management of private funds for a client:

​(1) A client of a private fund shall comprise private individuals/a group of persons with a number of not over 35 persons;

​(2) The private fund management company shall prepare the client's profile in writing (customer's profiles/ KYC);

​(3) The private fund management company shall propose an investment policy appropriate for the clients after an assessment of their investment objective, investment experiences, financial status, financial obligations, investment requirements, and restrictions.

1.2 The agreement for the management of a private fund or provident fund shall have the ​​following features:

​(1) The agreement does not contain a statement  that the private fund management company can deny any civil liabilities arising from a willful act, or from negligence to perform duties specified in the agreement;

​(2) The agreement contains a statement informing clients of the obligations of the clients with which they shall comply with in accordance with the relevant laws;

​(3) In the case of a provident fund, the term of the agreement shall be not less than two years;

​(4) The agreement contains a statement that customs have the right to terminate the agreement for management of a private fund within five business days without giving prior notice to the private fund management company and shall not be liable to compensate any damages to the private fund management company arising from such termination, with the exception of the case that the agreement is made with a client that is a provident fund or the Government Pension Fund;

​(5) In the case of a margin loan, a loan limit and conditions of such credit shall be specified, and there shall be a statement conveying the client's consent to assign the private fund management company to arrange such matter.

1.3 The private fund management company shall invest according to the client's instructions, provided that the company has completed the duties of management of the client's investment capital. Primarily, the company has recommended suitable investments after considering the risks acceptable by the clients while focusing on protecting and safeguarding the best interests of the investors.

​1.4 The private fund management company shall not follow orders of the clients without any considerations and judgments (a non-discretionary account) since it is not considered a practice of private fund management. ​​