Introducing Broker Agreement Template for Philippines

The Introducing Broker Agreement is a crucial document in the Philippine financial services sector that formalizes the relationship between an introducing broker who sources and refers clients, and a receiving broker-dealer who executes trades and maintains client accounts. This agreement is essential when a licensed broker wishes to expand their client base through partnerships with other regulated entities. The document must comply with the Philippines Securities Regulation Code, BSP regulations, and anti-money laundering laws. It typically includes detailed provisions on commission sharing, client onboarding procedures, regulatory compliance requirements, confidentiality obligations, and risk management protocols. The agreement is particularly relevant in the context of the growing Philippine securities market and increasing sophistication of financial services offerings.

1. Parties: Identifies and defines the introducing broker and the receiving broker/dealer, including their complete legal names, registration details, and principal places of business

2. Background: Explains the context of the agreement, including the parties' business activities and their intention to enter into an introducing broker relationship

3. Definitions: Defines key terms used throughout the agreement, including regulatory terms specific to Philippines securities laws

4. Scope of Services: Details the introducing broker's responsibilities, including client introduction, documentation handling, and permitted activities

5. Regulatory Compliance: Outlines compliance requirements under Philippines securities laws, including licensing, registration, and reporting obligations

6. Representations and Warranties: Contains statements from both parties regarding their legal capacity, regulatory status, and authority to enter into the agreement

7. Compensation Structure: Details the commission rates, payment terms, and calculation methods for broker compensation

8. Client Relationships: Defines ownership of client relationships, communication protocols, and client data handling

9. Confidentiality: Specifies obligations regarding confidential information and compliance with Philippines Data Privacy Act

10. Term and Termination: States the duration of the agreement and circumstances under which it can be terminated

11. Indemnification: Outlines mutual indemnification obligations and liability limitations

12. Governing Law and Jurisdiction: Specifies Philippines law as governing law and defines jurisdiction for dispute resolution

13. General Provisions: Contains standard legal provisions including notices, amendments, and assignment rights