Commercial Loan Referral Fee Agreement Template for Singapore

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Key Requirements PROMPT example:

Commercial Loan Referral Fee Agreement

"I need a Commercial Loan Referral Fee Agreement for our Singapore bank to engage external business consultants who will refer SME clients to us for commercial loans, with a tiered commission structure based on loan size and a minimum referral target of 10 successful deals per quarter."

What is a Commercial Loan Referral Fee Agreement?

The Commercial Loan Referral Fee Agreement is essential for businesses operating in Singapore's financial services sector who wish to formalize referral arrangements for commercial lending. This document is particularly relevant given Singapore's strict regulatory environment under MAS oversight. It addresses key aspects including referral fee structures, compliance with anti-money laundering regulations, data protection requirements, and specific obligations of both referrer and financial institution. The agreement is designed to protect both parties while ensuring compliance with Singapore's banking and financial services regulations.

What sections should be included in a Commercial Loan Referral Fee Agreement?

1. Parties: Identification of the referrer and the financial institution

2. Background: Context of the referral arrangement and relationship between parties

3. Definitions: Key terms used throughout the agreement including 'Referral Services', 'Qualified Referrals', 'Referral Fees'

4. Scope of Services: Details of referral services to be provided, including referral criteria and process

5. Referral Fee Structure: Payment terms, calculation method, and payment schedule for referral fees

6. Obligations of Parties: Responsibilities and duties of each party, including compliance with applicable laws

7. Representations and Warranties: Standard warranties regarding capacity, authority, and compliance with laws

8. Term and Termination: Duration of agreement and circumstances for termination

9. Confidentiality: Protection of confidential information and client data

10. General Provisions: Standard boilerplate clauses including notices, amendments, governing law

What sections are optional to include in a Commercial Loan Referral Fee Agreement?

1. Non-Competition: Restrictions on competitive activities, used when exclusivity is required

2. Marketing Guidelines: Rules for promotional activities and marketing of referral services

3. Training Requirements: Specific training requirements for referrer's staff handling referrals

4. Regulatory Compliance: Detailed compliance obligations under Singapore banking and financial regulations

5. Data Protection: Specific provisions relating to PDPA compliance and data handling

What schedules should be included in a Commercial Loan Referral Fee Agreement?

1. Schedule 1 - Fee Schedule: Detailed breakdown of referral fees and calculation methods

2. Schedule 2 - Referral Process: Step-by-step procedure for making and processing referrals

3. Schedule 3 - Compliance Requirements: Specific regulatory requirements and compliance procedures

4. Schedule 4 - Required Forms: Standard forms and templates for referral documentation

5. Schedule 5 - Service Level Agreement: Performance metrics and service standards for referral processing

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

Clauses
Industries

Banking Act (Cap. 19): Primary legislation governing banking activities in Singapore, including regulations on referral arrangements and banking transactions

Securities and Futures Act (Cap. 289): Regulates financial products and services, including requirements for referral arrangements related to securities and investment products

Financial Advisers Act (Cap. 110): Governs financial advisory services and related referral arrangements, including disclosure requirements and fee structures

Moneylenders Act (Cap. 188): Regulates moneylending activities and related referral arrangements in Singapore

MAS Guidelines on Fair Dealing: Regulatory guidelines ensuring fair treatment of customers in financial services, including referral arrangements

MAS Guidelines on Referral Arrangements: Specific guidelines governing referral arrangements in the financial sector

MAS AML/CFT Guidelines: Guidelines on Anti-Money Laundering and Countering the Financing of Terrorism requirements for financial transactions

MAS Notice 626: Specific notice on Prevention of Money Laundering and Countering the Financing of Terrorism requirements

Personal Data Protection Act 2012: Governs the collection, use, and disclosure of personal data in Singapore, crucial for handling client information in referral arrangements

Contract Law (Amendment) Act 2012: Primary legislation governing contract formation, execution, and enforcement in Singapore

Electronic Transactions Act: Governs electronic transactions and digital signatures, relevant for online or electronic referral arrangements

Unfair Contract Terms Act: Protects against unfair terms in contracts, ensuring balance in referral agreements

Companies Act (Cap. 50): Regulates business entities and their commercial activities in Singapore

Partnership Act (Cap. 391): Governs partnership arrangements, relevant if referral agreement involves partnership structures

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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