Commission Agreement Between Brokers Template for Indonesia

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Key Requirements PROMPT example:

Commission Agreement Between Brokers

"I need a Commission Agreement Between Brokers for my Jakarta-based securities brokerage firm to collaborate with a Singapore-based broker, with a 60-40 commission split for cross-border trades and specific compliance with Indonesian OJK regulations."

Document background
The Commission Agreement Between Brokers serves as a crucial document for establishing formal collaborative relationships between licensed brokers operating in Indonesia. It is typically used when two or more brokers wish to formalize their commission-sharing arrangements for referred business or joint transactions. The agreement must comply with Indonesian regulatory requirements, including those set by the Financial Services Authority (OJK) and relevant market regulations. This document is essential for situations where brokers collaborate across different market segments or when dealing with cross-regional transactions within Indonesia. It includes detailed provisions for commission calculations, payment terms, compliance requirements, and dispute resolution mechanisms, all structured within the framework of Indonesian law and business practices.
Suggested Sections

1. Parties: Identification of the brokers entering into the agreement, including their licensed status and registration details

2. Background: Context of the agreement and the intention to collaborate on commission sharing

3. Definitions: Key terms used throughout the agreement, including specific industry terminology

4. Scope of Collaboration: Details of the business relationship and types of transactions covered

5. Commission Structure: Framework for calculating and sharing commissions between the parties

6. Payment Terms: Timing, method, and currency of commission payments

7. Obligations and Responsibilities: Duties of each broker in the relationship, including regulatory compliance

8. Representations and Warranties: Statements confirming each party's authority, licenses, and capacity to enter the agreement

9. Confidentiality: Protection of sensitive business information shared between parties

10. Term and Termination: Duration of the agreement and circumstances for termination

11. Dispute Resolution: Process for resolving disagreements under Indonesian law

12. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction

13. General Provisions: Standard clauses including notices, amendments, and severability

Optional Sections

1. Non-Compete: Restrictions on competing activities, used when parties want to protect their business interests

2. Cross-Border Transactions: Additional provisions for international deals, included when parties operate across multiple jurisdictions

3. Training and Support: Terms for mutual training or support services, included when parties agree to provide additional services

4. Marketing and Branding: Guidelines for using each other's brands, included when joint marketing is planned

5. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in volatile markets

6. Insurance Requirements: Specific insurance obligations, included when additional coverage is required

7. Data Protection: Additional privacy and data handling requirements, when dealing with sensitive client information

Suggested Schedules

1. Schedule A - Commission Rates: Detailed breakdown of commission percentages for different types of transactions

2. Schedule B - Territory Allocation: Geographic areas or market segments covered by the agreement

3. Schedule C - Required Licenses: List of regulatory licenses and certifications held by each party

4. Schedule D - Reporting Template: Standard format for commission calculations and reporting

5. Schedule E - Contact Details: Key personnel and official communication channels

6. Appendix 1 - Compliance Procedures: Detailed procedures for ensuring regulatory compliance

7. Appendix 2 - Service Level Standards: Performance metrics and service quality standards

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

Clauses
Relevant Industries

Financial Services

Real Estate

Insurance

Commodities Trading

Securities Trading

Investment Banking

Foreign Exchange

Commercial Property

Agricultural Commodities

Precious Metals Trading

Relevant Teams

Legal

Compliance

Operations

Finance

Business Development

Risk Management

Broker Relations

Partnership Management

Regulatory Affairs

Commission Administration

Relevant Roles

Broker

Senior Broker

Managing Broker

Compliance Officer

Legal Counsel

Business Development Manager

Operations Manager

Finance Director

Partnership Manager

Risk Manager

Commission Account Manager

Broker Relations Manager

Chief Operating Officer

Regulatory Affairs Director

Industries
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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