Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Investment management agreement definition

What does Investment management agreement mean? An investment management agreement (IMA) is the contract under which a client—commonly the trustees of an occupational pension scheme—appoints an investment manager to manage a defined portfolio, either on a discretionary or advisory basis. The term is descriptive rather than statutory, but in the pensions context specific rules apply: in England & Wales and Scotland the Occupational Pension Schemes (Investment) Regulations 2005 (with equivalent Northern Ireland regulations) require a written appointment consistent with the scheme’s statement of investment principles; in Ireland, the Pensions Act 1990 (as amended) and IORP II rules impose governance and delegation requirements. Managers must...

UK occupational pension scheme trustees: drafting and negotiating discretionary investment management agreements: key regulatory and commercial issues

Published by a LexisNexis Pensions expert

Practice notes

The management of assets belonging to another person on a discretionary basis is a 'regulated activity' overseen by the Financial Conduct Authority (FCA).

As a general position, trustees of occupational pension schemes (Trustees) are not typically authorised by the FCA, or under applicable legislation, to manage most categories of scheme assets. Consequently, Trustees must pass day-to-day investment decisions to an FCA-authorised party to implement investments on their behalf. A frequent approach is to appoint an investment manager (the Manager), which constitutes a delegation of their core investment responsibilities. When a Manager is engaged under a discretionary investment management agreement (an IMA), the Trustees confer their discretionary investment powers. The scheme employer may also join the IMA to meet requirements connected to recovering VAT—see Practice Note: VAT and pension scheme costs. In contrast to investment advisory mandates or non-discretionary management arrangements, the Manager is empowered to execute transactions for the Trustees. Accordingly, it is vitally important that the Trustees are clear about the scope...

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Jonathan Gilmour

Travers Smith

Jonathan specialises in derivatives and structured products from both a transactional and advisory standpoint. He is widely regarded by peers and clients as one of the leading specialists in his field. He counts among his clients some of the UK's largest and most sophisticated financial institutions, investment managers, private equity houses, challenger banks and occupational pension schemes. Jonathan regularly negotiates and advises on ISDA, GMRA and GMSLA documentation as well as the impact of related regulation including EMIR and SFTR. He also advises on the structure and documentation of bespoke transactions to hedge exposure to key market risks, including interest rate, inflation, FX and longevity; and advises on investment management, custody, clearing and collateral management arrangements, as well as pension scheme funding and risk transfer arrangements. Jonathan's practice also includes advising clients on the...

Cindy Smith

Travers Smith

Cindy is a Senior Counsel in the Derivatives & Structured Products Group at Travers Smith. Cindy is an experienced finance lawyer whose practice is predominantly focussed on advising pensions clients. Cindy advises pension scheme trustees and sponsoring employers on scheme funding, investment and covenant matters. Cindy has expertise in security and contingent funding arrangements in the context of pension scheme funding negotiations and corporate activity. She has advised a number of large UK pension schemes on contingent asset solutions including guarantees, asset-backed contribution structures and escrow arrangements and on the legal aspects of investment management and risk transfer. Cindy also advises large DC and master trust clients on a broad range of matters, and is a key member of the team which advises Nest....

Elinor Samuel

Travers Smith

Elinor is a senior associate in the Derivatives & Structured Products Group at Travers Smith. She advises a diverse range of clients, including asset managers, banks, financial institutions, UK pension schemes, funds, and corporates, on the structuring and implementation of derivatives products. Elinor is experienced in drafting, negotiating, and advising on ISDA, GMRA, and GMSLA documentation, as well as bespoke agreements to hedge market risks such as interest rates, FX, and commodities exposures. She regularly assists clients with custody, clearing, and collateral management arrangements (including CSAs/CSDs for both VM and IM), and advises on related regulatory frameworks such as EMIR/UK EMIR, SFTR/UK SFTR, and CSDR/UK CSDR. Her regulatory practice covers optimisation projects, trading policies, and remediation strategies to rectify gaps in compliance. Elinor also advises pension scheme trustees on covenant and investment matters, including bilateral and agency trading...

Web page updated on 22/05/2026

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