Guam Distribution Agreement regarding the continuous offering of the Fund's shares

• Category: Corporations - Public - Distribution
• State: Multi-State
• Control #: US-EG-9373
• Format: Word; Rich Text

Description

Distribution Agreement between Prudential Tax-Managed Growth Fund and Prudential Investment Management Services, LLC regarding the continuous offering of the Fund's shares in order to promote the growth of the Fund and facilitate the distribution of the Guam Distribution Agreement is a legal contract that outlines the terms and conditions for the continuous offering of a fund's shares. This agreement is highly significant in the investment industry as it facilitates the distribution and sale of shares to potential investors in Guam. It is essential for fund managers and distributors to maintain compliance with the Guam Distribution Agreement to ensure the proper functioning and transparency of the fund. The Guam Distribution Agreement encompasses several key aspects that are important to consider: 1. Parties Involved: This agreement involves the fund manager or sponsor responsible for managing the fund and a distributor who engages in the sale and promotion of the fund's shares in Guam. Both parties must be clearly identified and defined within the agreement. 2. Jurisdiction and Applicable Laws: The Guam Distribution Agreement should specify that it is governed by and subject to the laws of Guam. It clarifies the legal framework within which the distribution activities are carried out and provides a basis for dispute resolution. 3. Distribution Obligations: The agreement outlines the obligations and responsibilities of the distributor, including the promotion, solicitation, and sale of the fund's shares in Guam. It may define the target investor market, distribution channels, and marketing strategies to be employed. 4. Compensation and Fees: The agreement specifies the compensation structure for the distributor, which may include upfront sales charges, redemption fees, or ongoing trailing commissions. The agreement should also mention any expenses or reimbursements related to the distribution efforts. 5. Compliance and Regulatory Requirements: The Guam Distribution Agreement should ensure the distributor's compliance with applicable laws, regulations, and industry standards, such as Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements. It may include provisions regarding reporting, record-keeping, and audits to ensure transparency and regulatory compliance. 6. Termination and Amendments: Terms and conditions for the termination of the agreement must be included, along with any provisions for amendments or modifications. This ensures flexibility if changes are required due to regulatory updates or changing business circumstances. Different types of Guam Distribution Agreements may exist to cater to various fund structures or distribution models. These could include: 1. Exclusive distribution agreement: An agreement where the distributor has exclusive rights to promote and sell the fund's shares in Guam. 2. Non-exclusive distribution agreement: In this type of agreement, the fund manager may engage multiple distributors simultaneously. 3. General distribution agreement: A broad agreement that encompasses all distribution activities, responsibilities, and terms without specific restrictions. 4. Sub-distribution agreement: A secondary agreement between the primary distributor and sub-distributor(s) to expand the fund's reach and access a wider range of investors in Guam. By ensuring the adherence to a Guam Distribution Agreement, fund managers and distributors can foster a transparent and compliant investment environment, protecting the interests of both investors and the fund itself.

Guam Distribution Agreement is a legal contract that outlines the terms and conditions for the continuous offering of a fund's shares. This agreement is highly significant in the investment industry as it facilitates the distribution and sale of shares to potential investors in Guam. It is essential for fund managers and distributors to maintain compliance with the Guam Distribution Agreement to ensure the proper functioning and transparency of the fund. The Guam Distribution Agreement encompasses several key aspects that are important to consider: 1. Parties Involved: This agreement involves the fund manager or sponsor responsible for managing the fund and a distributor who engages in the sale and promotion of the fund's shares in Guam. Both parties must be clearly identified and defined within the agreement. 2. Jurisdiction and Applicable Laws: The Guam Distribution Agreement should specify that it is governed by and subject to the laws of Guam. It clarifies the legal framework within which the distribution activities are carried out and provides a basis for dispute resolution. 3. Distribution Obligations: The agreement outlines the obligations and responsibilities of the distributor, including the promotion, solicitation, and sale of the fund's shares in Guam. It may define the target investor market, distribution channels, and marketing strategies to be employed. 4. Compensation and Fees: The agreement specifies the compensation structure for the distributor, which may include upfront sales charges, redemption fees, or ongoing trailing commissions. The agreement should also mention any expenses or reimbursements related to the distribution efforts. 5. Compliance and Regulatory Requirements: The Guam Distribution Agreement should ensure the distributor's compliance with applicable laws, regulations, and industry standards, such as Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements. It may include provisions regarding reporting, record-keeping, and audits to ensure transparency and regulatory compliance. 6. Termination and Amendments: Terms and conditions for the termination of the agreement must be included, along with any provisions for amendments or modifications. This ensures flexibility if changes are required due to regulatory updates or changing business circumstances. Different types of Guam Distribution Agreements may exist to cater to various fund structures or distribution models. These could include: 1. Exclusive distribution agreement: An agreement where the distributor has exclusive rights to promote and sell the fund's shares in Guam. 2. Non-exclusive distribution agreement: In this type of agreement, the fund manager may engage multiple distributors simultaneously. 3. General distribution agreement: A broad agreement that encompasses all distribution activities, responsibilities, and terms without specific restrictions. 4. Sub-distribution agreement: A secondary agreement between the primary distributor and sub-distributor(s) to expand the fund's reach and access a wider range of investors in Guam. By ensuring the adherence to a Guam Distribution Agreement, fund managers and distributors can foster a transparent and compliant investment environment, protecting the interests of both investors and the fund itself.