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Commission Agreement Between Brokers Template for Nigeria

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Key Requirements PROMPT example:

Commission Agreement Between Brokers

"I need a Commission Agreement Between Brokers under Nigerian law for a stock brokerage firm collaborating with a commodities broker, with a 60-40 commission split and strict compliance requirements for cross-border transactions."

Document background
The Commission Agreement Between Brokers serves as a critical document for establishing formal collaboration between licensed brokers operating in Nigeria's financial markets. This agreement is essential when brokers wish to formalize revenue-sharing arrangements, whether for client referrals, joint transactions, or cross-market dealings. The document ensures compliance with Nigerian regulatory requirements, including the Investments and Securities Act 2007 and SEC regulations, while providing clear terms for commission calculations, payment procedures, and dispute resolution. It's particularly relevant in today's interconnected financial markets where brokers increasingly collaborate across different specializations and market segments. The agreement includes comprehensive provisions for regulatory compliance, risk management, and operational procedures, making it suitable for both domestic and international broker relationships within the Nigerian jurisdiction.
Suggested Sections

1. Parties: Identification of the brokers entering into the agreement, including their registration details and SEC license numbers

2. Background: Context of the agreement and brief description of the brokers' businesses and intent to collaborate

3. Definitions: Key terms used throughout the agreement, including specific industry terminology

4. Scope of Agreement: Details of the business relationship and types of transactions covered

5. Commission Structure: Specification of commission rates, calculation methods, and payment terms

6. Payment Terms: Timeline and method of commission payments, including currency and payment procedures

7. Obligations of the Parties: Specific duties and responsibilities of each broker

8. Compliance Requirements: Obligations to comply with Nigerian securities laws, SEC regulations, and AML requirements

9. Confidentiality: Protection of confidential information shared between the parties

10. Term and Termination: Duration of the agreement and conditions for termination

11. Dispute Resolution: Process for resolving disagreements, including jurisdiction and applicable law

12. General Provisions: Standard clauses including notices, amendments, and entire agreement provisions

Optional Sections

1. Exclusivity: Terms regarding exclusive arrangements between the brokers, used when parties agree to work exclusively in certain areas or transactions

2. Cross-Border Transactions: Additional provisions for international transactions, needed when deals involve foreign parties or markets

3. Training and Support: Details of any training or operational support provided between brokers, included when knowledge sharing is part of the arrangement

4. Marketing and Branding: Guidelines for using each other's brands and marketing materials, included when joint marketing is contemplated

5. Insurance Requirements: Specific insurance coverage requirements, included for high-risk or high-value transactions

6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in volatile markets or uncertain conditions

Suggested Schedules

1. Schedule A - Commission Rates: Detailed breakdown of commission rates for different types of transactions

2. Schedule B - Payment Procedures: Step-by-step process for commission calculations and payments

3. Schedule C - Compliance Procedures: Detailed procedures for ensuring regulatory compliance

4. Schedule D - Authorized Representatives: List of authorized personnel who can act on behalf of each broker

5. Appendix 1 - Required Documentation: Templates and forms required for commission claims and transaction processing

6. Appendix 2 - Service Level Standards: Performance metrics and service standards agreed between the parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































Clauses


































Relevant Industries

Financial Services

Securities Trading

Insurance

Real Estate

Commodities Trading

Investment Banking

Foreign Exchange

Capital Markets

Asset Management

Relevant Teams

Legal

Compliance

Operations

Finance

Risk Management

Business Development

Trading

Partnerships

Regulatory Affairs

Account Management

Relevant Roles

Broker

Compliance Officer

Legal Counsel

Chief Executive Officer

Chief Financial Officer

Operations Manager

Business Development Manager

Risk Manager

Managing Director

Partnership Manager

Regulatory Affairs Officer

Commission Manager

Account Manager

Trading Manager

Industries








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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