Finder's Fee Agreement For Raising Capital Template for Australia

A Finder's Fee Agreement For Raising Capital is a legal contract that formalises the relationship between your company and an intermediary who helps secure investment capital. In Australia, this agreement ensures compliance with strict regulatory requirements under the Corporations Act 2001 and ASIC guidelines while protecting both parties' interests in capital raising activities.

When do you need this document?

You need this agreement when engaging professional intermediaries to access investor networks and secure funding for your business. It's essential when working with investment brokers, corporate advisors, or business consultants who will introduce you to potential investors. The document becomes particularly important when dealing with significant investment amounts or when your finder has access to high-net-worth individuals or institutional investors. You should also use this agreement when your capital raising activities involve multiple jurisdictions or complex investment structures that require professional expertise to navigate.

Key legal considerations

The agreement must clearly define what constitutes a "successful introduction" and establish precise fee calculation methods to avoid disputes. You need to specify the finder's permitted activities and ensure they don't breach Australian Financial Services (AFS) licensing requirements. Payment terms should be structured to align with investment milestones, and the agreement must include appropriate confidentiality and non-disclosure provisions to protect sensitive business information. Consider including territorial restrictions, exclusivity clauses, and termination conditions. The document should also address potential conflicts of interest and establish clear boundaries around the finder's role versus prohibited financial advice activities.

Legal requirements in Australia

Under the Corporations Act 2001, your agreement must ensure the finder doesn't provide unlicensed financial services or product advice unless they hold appropriate ASIC licensing. The arrangement must comply with Chapter 7 requirements regarding financial services licensing, and you need to verify the finder's credentials and regulatory status. Anti-Money Laundering and Counter-Terrorism Financing Act 2006 obligations apply, requiring proper customer due diligence and reporting procedures. The agreement should reference ASIC's regulatory guidance on finder's fees and ensure all activities fall within permitted exemptions or licensing frameworks. Additionally, consider consumer protection requirements under the Australian Securities and Investments Commission Act 2001, particularly regarding disclosure obligations and fair dealing requirements when dealing with retail investors.