The Broker Partnership Agreement is essential for establishing formal partnerships in Malaysia's regulated brokerage sector. This document is typically used when two or more licensed brokers or brokerage entities wish to combine their operations, share resources, or expand their business through a partnership structure. The agreement must comply with Malaysian partnership law, financial services regulations, and capital markets requirements. It includes detailed provisions for partnership governance, profit sharing, regulatory compliance, client management, and risk mitigation. The document is particularly important in Malaysia's context due to the strict regulatory oversight of the Securities Commission Malaysia and Bank Negara Malaysia. It serves as both a commercial framework for the partnership and a compliance tool ensuring adherence to regulatory requirements.

1. Parties: Identification of all partners entering into the agreement, including their full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, including the nature of the brokerage business and the parties' intentions to form a partnership

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Partnership Structure: Details of partnership type, ownership percentages, and capital contributions

5. Scope of Business: Detailed description of permitted brokerage activities and services to be offered

6. Licensing and Regulatory Compliance: Requirements for maintaining necessary licenses and complying with regulatory obligations

7. Rights and Obligations of Partners: Detailed responsibilities, duties, and rights of each partner

8. Management and Decision Making: Governance structure, voting rights, and decision-making processes

9. Financial Arrangements: Profit sharing, loss distribution, capital accounts, and financial management procedures

10. Client Management: Protocols for client acquisition, retention, and relationship management

11. Confidentiality: Protection of partnership and client confidential information

12. Non-Competition and Non-Solicitation: Restrictions on competitive activities and client solicitation

13. Dispute Resolution: Procedures for resolving disputes between partners

14. Term and Termination: Duration of partnership and conditions for termination

15. General Provisions: Standard clauses including notices, amendments, governing law, and severability