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Broker Commission Agreement Template for Singapore

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Key Requirements PROMPT example:

Broker Commission Agreement

"Need a Broker Commission Agreement for a Singapore-based financial services company engaging multiple independent brokers to sell investment products, with a tiered commission structure and quarterly performance targets starting from March 2025."

Document background
The Broker Commission Agreement is essential for businesses in Singapore seeking to formalize relationships with brokers who facilitate transactions or sales on their behalf. This agreement, regulated under Singapore law, defines the scope of services, commission structures, and performance expectations while ensuring compliance with relevant regulations such as the Securities and Futures Act. It protects both parties by clearly outlining rights, obligations, and compensation terms, making it particularly important in sectors where broker-facilitated transactions are common, such as financial services, real estate, and insurance.
Suggested Sections

1. Parties: Identification of the broker and principal parties

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Scope of Services: Detailed description of broker's services and responsibilities

5. Commission Structure: Calculation method, payment terms, and conditions for broker's commission

6. Term and Termination: Duration of agreement, renewal terms, and termination provisions

7. Obligations of Parties: Detailed responsibilities and duties of both the broker and principal

8. Representations and Warranties: Statements of fact and promises made by both parties

9. Compliance with Laws: Obligations to comply with relevant legislation and regulations

10. Confidentiality: Protection and handling of confidential information

11. Governing Law and Jurisdiction: Specification of Singapore law as governing law and jurisdiction for disputes

Optional Sections

1. Non-Compete: Restrictions on broker's competing activities during and after the agreement

2. Minimum Performance Requirements: Specific performance targets and metrics for the broker

3. Training and Support: Principal's obligations regarding training and resource provision

4. Insurance Requirements: Specific insurance coverage requirements for the broker

5. Data Protection: Specific provisions for handling personal data under PDPA

Suggested Schedules

1. Commission Rate Card: Detailed breakdown of commission rates and calculation methods

2. Territory Schedule: Definition of geographical coverage and any territorial restrictions

3. Product Schedule: Comprehensive list of products or services covered under the agreement

4. Service Level Agreement: Detailed performance metrics, standards, and response times

5. Compliance Requirements: Specific regulatory requirements and compliance procedures

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



































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Industries

Securities and Futures Act (SFA): Primary legislation governing securities, futures, and derivatives markets in Singapore, including broker-dealer activities and licensing requirements

Financial Advisers Act (FAA): Regulates financial advisory services in Singapore, including requirements for financial advisers and brokers providing financial advice

Insurance Act: Governs insurance business in Singapore, including regulations for insurance brokers and intermediaries

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

MAS Guidelines: Regulatory guidelines issued by the Monetary Authority of Singapore providing detailed compliance requirements for financial institutions and intermediaries

Contract Law (Chapter 2): Singapore's primary legislation governing formation and enforcement of contracts, essential for broker agreements

Unfair Contract Terms Act: Protects against unreasonable contract terms and conditions in Singapore contracts

Electronic Transactions Act: Governs electronic transactions and digital signatures in Singapore, relevant for electronic contract execution

Employment Act: Main labor law of Singapore, potentially relevant if broker relationship could be construed as employment

Central Provident Fund Act: Governs Singapore's social security savings system, may be relevant if broker relationship has employment characteristics

Personal Data Protection Act 2012: Governs collection, use, and disclosure of personal data, crucial for handling client and broker information

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

MAS Guidelines on Prevention of Money Laundering: Specific guidelines for preventing money laundering and terrorism financing in financial transactions and broker activities

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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