Broker Agent Agreement for Singapore

Broker Agent Agreement Template for Singapore

A comprehensive legal agreement governed by Singapore law that establishes the terms and conditions between a principal and a broker agent. The agreement complies with Singapore's Securities and Futures Act, Financial Advisers Act, and other relevant regulations. It details the scope of services, commission structures, obligations, compliance requirements, and operational procedures while incorporating specific provisions required under Singapore's regulatory framework.

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What is a Broker Agent Agreement?

The Broker Agent Agreement is essential for businesses operating in Singapore's regulated markets where intermediary services are required. This agreement is particularly crucial in financial services, real estate, and insurance sectors where broker relationships must comply with strict regulatory requirements. The document establishes the legal framework for the broker-principal relationship, covering critical aspects such as licensing requirements, commission structures, compliance obligations, and risk management procedures. It ensures alignment with Singapore's regulatory framework, including the Securities and Futures Act and Financial Advisers Act.

What sections should be included in a Broker Agent Agreement?

1. Parties: Identification of the principal and broker agent

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of appointment and detailed scope of services

5. Commission Structure: Details of compensation and payment terms

6. Obligations and Duties: Responsibilities of both parties including regulatory compliance requirements

7. Term and Termination: Duration of agreement and termination provisions

8. Confidentiality: Protection of confidential information and data privacy compliance

What sections are optional to include in a Broker Agent Agreement?

1. Non-Compete: Restrictions on competitive activities during and after the agreement term

2. Intellectual Property: IP ownership and usage rights for marketing materials and proprietary information

3. Insurance Requirements: Required insurance coverage and minimum liability requirements

What schedules should be included in a Broker Agent Agreement?

1. Commission Schedule: Detailed breakdown of commission structures, calculations, and payment terms

2. Territory Schedule: Definition of geographical areas or market segments covered by the agreement

3. Service Level Agreement: Specific performance metrics, standards, and reporting requirements

4. Compliance Requirements: Detailed regulatory requirements, compliance procedures, and reporting obligations

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

Jurisdiction

Singapore

Publisher

Genie AI

Document Type

Agency Agreement

Cost

Free to use
Clauses
Industries

Securities and Futures Act (SFA): Primary legislation governing securities, futures, and derivatives trading activities in Singapore. Regulates broker-dealers, market operators, and other intermediaries.

Financial Advisers Act (FAA): Regulates financial advisory services in Singapore, including requirements for licensing, business conduct, and client relations for financial advisers and brokers.

Insurance Act: Governs insurance business and insurance intermediaries in Singapore, including insurance brokers and their obligations.

Estate Agents Act: Regulates real estate agents and agencies in Singapore, including licensing requirements and professional conduct standards.

Securities and Futures (Licensing and Conduct of Business) Regulations: Detailed regulations specifying licensing requirements and business conduct rules for securities and futures brokers.

Financial Advisers Regulations: Specific regulations under FAA detailing requirements for financial advisory services and broker conduct.

Contract Law: Common law principles governing formation and enforcement of contracts in Singapore.

Companies Act: Regulates the formation and operation of companies in Singapore, relevant for corporate brokers and agencies.

Partnership Act: Governs the formation and operation of partnerships, applicable if the brokerage operates as a partnership.

Competition Act: Ensures fair competition and prevents anti-competitive practices in the market.

Employment Act: Governs employment relationships and protects employees' rights if brokers are considered employees.

Personal Data Protection Act (PDPA): Regulates the collection, use, and disclosure of personal data by organizations, including broker agencies.

Corruption, Drug Trafficking and Other Serious Crimes Act: Contains anti-money laundering provisions that brokers must comply with in their operations.

MAS Notice on Prevention of Money Laundering and Countering the Financing of Terrorism: Specific guidelines from MAS regarding AML/CFT compliance requirements for financial intermediaries.

Central Provident Fund Act: Governs mandatory social security savings system, relevant if brokers are employees requiring CPF contributions.

Work Injury Compensation Act: Provides framework for compensation in case of work-related injuries, applicable if brokers are employees.

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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