Introducing Broker Agreement Template for Indonesia

The Introducing Broker Agreement is essential for financial institutions operating in Indonesia that wish to expand their client base through authorized intermediaries. This document is specifically designed to comply with Indonesian regulatory requirements, including OJK regulations, capital market laws, and anti-money laundering provisions. It is commonly used when a Principal Broker wants to leverage the network and expertise of an Introducing Broker to acquire new clients while maintaining regulatory compliance. The agreement covers crucial aspects such as service scope, commission structures, compliance requirements, and operational procedures, ensuring all parties understand their roles and responsibilities under Indonesian law. It's particularly important for establishing clear guidelines on client introductions, due diligence processes, and ongoing compliance monitoring in the Indonesian financial services sector.

1. Parties: Identification of the Principal Broker and the Introducing Broker, including their complete legal names, registration numbers, and addresses

2. Background: Context of the agreement, including the Principal Broker's business, the Introducing Broker's capabilities, and the intention to establish a referral relationship

3. Definitions: Key terms used throughout the agreement, including 'Introduced Clients', 'Services', 'Commission', and regulatory terminology

4. Appointment and Scope: Terms of the Introducing Broker's appointment and detailed scope of authorized activities

5. Regulatory Compliance: Obligations to comply with Indonesian financial regulations, particularly OJK requirements and anti-money laundering laws

6. Introducing Broker's Obligations: Detailed responsibilities including client introduction procedures, due diligence requirements, and service standards

7. Principal Broker's Obligations: Responsibilities of the principal broker, including service provision to introduced clients and broker support

8. Commission Structure: Details of compensation, calculation methods, payment terms, and conditions for commission eligibility

9. Representations and Warranties: Standard and specific warranties from both parties, including licensing, authority, and compliance status

10. Confidentiality: Protection of confidential information, trade secrets, and client data

11. Term and Termination: Duration of the agreement, renewal terms, and circumstances for termination

12. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution