Broker To Broker Commission Agreement Template for Denmark

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Key Requirements PROMPT example:

Broker To Broker Commission Agreement

I need a Broker to Broker Commission Agreement for a Danish insurance brokerage firm entering into a referral arrangement with a financial services broker, with a 30% commission split on all successful referrals and specific provisions for compliance with Danish insurance regulations.

What is a Broker To Broker Commission Agreement?

The Broker to Broker Commission Agreement is essential for establishing formal commission-sharing arrangements between professional brokers operating under Danish jurisdiction. This document is particularly relevant when two brokerage firms wish to collaborate, share clients, or refer business to each other while maintaining compliance with Danish financial regulations and EU directives. The agreement covers crucial aspects such as commission calculations, payment terms, service levels, and regulatory compliance requirements. It's specifically designed to address the complex nature of broker relationships in Denmark's highly regulated financial services environment, ensuring that all parties understand their obligations and entitlements while maintaining transparency and legal compliance. The document is structured to accommodate various types of brokerage services while incorporating necessary safeguards and compliance measures required by Danish law.

What sections should be included in a Broker To Broker Commission Agreement?

1. Parties: Identification and details of the participating brokers, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement and brief description of the brokers' businesses and their intention to collaborate

3. Definitions: Detailed definitions of key terms used throughout the agreement, including 'Commission', 'Clients', 'Services', 'Territory' etc.

4. Scope of Agreement: Defines the nature and extent of the broker relationship and permitted activities

5. Commission Structure: Details of commission rates, calculation methods, and payment terms

6. Payment Terms: Specifics about payment timing, currency, method of payment, and handling of taxes

7. Obligations of Party A: Detailed responsibilities and commitments of the first broker

8. Obligations of Party B: Detailed responsibilities and commitments of the second broker

9. Compliance Requirements: Regulatory compliance obligations, including AML, financial regulations, and data protection

10. Confidentiality: Provisions regarding the handling of confidential information and trade secrets

11. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

12. Dispute Resolution: Procedures for handling disputes, including jurisdiction and applicable law

13. General Provisions: Standard clauses including force majeure, entire agreement, amendments, and notices

What sections are optional to include in a Broker To Broker Commission Agreement?

1. Non-Compete: Restrictions on competing activities, used when brokers want to prevent direct competition

2. White Labeling: Terms for using each other's branding, needed when one broker's services are presented under the other's brand

3. Client Ownership: Specific provisions about client relationship ownership and transfer, important in shared client situations

4. Technology Integration: Terms for technical integration between broker systems, needed when platforms need to be connected

5. Training and Support: Details of any training or support services to be provided between brokers

6. Insurance Requirements: Specific insurance obligations, important in high-risk or regulated sectors

7. Marketing Cooperation: Terms for joint marketing activities and brand usage

8. Minimum Performance Requirements: Performance targets and consequences of not meeting them

What schedules should be included in a Broker To Broker Commission Agreement?

1. Schedule A - Commission Rates: Detailed breakdown of commission rates for different products or services

2. Schedule B - Services Description: Detailed description of services covered under the agreement

3. Schedule C - Compliance Procedures: Specific compliance and due diligence procedures to be followed

4. Schedule D - Reporting Templates: Standard formats for regular reporting and commission calculations

5. Schedule E - Contact Details: Key contact persons and escalation matrices for both parties

6. Appendix 1 - Technical Requirements: Technical specifications for any required system integrations

7. Appendix 2 - Service Level Agreement: Specific service levels and response times if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Insurance

Real Estate

Securities Trading

Commodities Trading

Foreign Exchange

Investment Banking

Maritime and Shipping

Business Services

Asset Management

Private Equity

Commercial Property

Wealth Management

Relevant Teams

Legal

Compliance

Finance

Operations

Business Development

Partner Relations

Risk Management

Sales

Account Management

Treasury

Commercial

Broker Relations

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Head of Compliance

Legal Counsel

Compliance Officer

Business Development Manager

Partnership Manager

Commission Manager

Operations Director

Finance Manager

Risk Manager

Broker Relations Manager

Senior Broker

Account Manager

Sales Director

Contract Administrator

Industries
Danish Contracts Act (Aftaleloven): Fundamental law governing contract formation, validity, and enforcement in Denmark. Essential for establishing the basic framework of the commission agreement.
Danish Commercial Agents Act (Handelsagentloven): While primarily focused on commercial agents, this law provides important principles regarding commission structures and commercial relationships that may be relevant by analogy.
Danish Financial Business Act (Lov om finansiel virksomhed): Regulates financial services and activities, including requirements for brokers operating in the financial sector.
Danish Money Laundering Act (Hvidvaskloven): Sets requirements for prevention of money laundering and terrorist financing, which brokers must comply with in their operations.
EU MiFID II Directive (as implemented in Danish law): Provides regulatory framework for financial instruments and improving protections for investors, affecting how brokers can operate and structure their agreements.
Danish Marketing Practices Act (Markedsføringsloven): Governs fair business practices and marketing activities, relevant for how brokers can market and represent their services.
Danish Competition Act (Konkurrenceloven): Ensures fair competition and prevents anti-competitive practices, which may affect commission structures and exclusive arrangements.
Danish Personal Data Protection Act (Databeskyttelsesloven): Implementation of GDPR in Danish law, relevant for handling client data between brokers.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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