Broker Client Agreement Template for Philippines

The Broker Client Agreement serves as the foundational document for establishing and governing the relationship between licensed securities brokers and their clients in the Philippines. This agreement is essential for compliance with the Securities Regulation Code and various regulations issued by the Philippine Securities and Exchange Commission. It encompasses critical aspects such as client classification, service scope, trading authorizations, risk disclosures, and fee structures. The document is designed to protect both parties' interests while ensuring transparency and regulatory compliance in securities trading activities. The agreement must incorporate specific requirements under Philippine law, including anti-money laundering provisions, know-your-client procedures, and mandatory risk disclosures.

1. Parties: Identification of the broker and client, including complete legal names, addresses, and registration details

2. Background: Brief context of the agreement and the broker's regulatory status under Philippine law

3. Definitions: Key terms used throughout the agreement, including regulatory and market-specific terminology

4. Scope of Services: Detailed description of brokerage services offered, including trading, custody, and advisory services if applicable

5. Client Classification: Classification of the client (retail/professional) and corresponding rights and protections

6. Trading Authorization: Terms governing the broker's authority to execute trades on behalf of the client

7. Client Obligations: Client's responsibilities including providing accurate information and maintaining sufficient funds

8. Fees and Charges: Comprehensive breakdown of all fees, commissions, and other charges

9. Risk Disclosure: Mandatory risk warnings and acknowledgments as required by Philippine securities regulations

10. Orders and Execution: Procedures for placing, modifying, and canceling orders

11. Settlement and Custody: Terms for trade settlement and safekeeping of client assets

12. Communications: Methods and protocols for official communications between parties

13. Representations and Warranties: Standard legal declarations by both parties

14. Compliance with Laws: Obligations regarding securities laws, anti-money laundering, and other regulations

15. Termination: Conditions and procedures for ending the agreement

16. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes