Stock Broker Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Stock Broker Agreement

"I need a Stock Broker Agreement for my UAE-based brokerage firm that primarily serves retail clients, with specific provisions for online trading platform access and mobile trading app usage, planned to launch in March 2025."

Document background
The Stock Broker Agreement is a fundamental document required for establishing a formal relationship between a licensed securities broker and their clients in the United Arab Emirates. This agreement is essential for compliance with UAE Federal Law No. 4 of 2000 and SCA regulations, serving as the primary contract governing securities trading services. It is used when investors wish to engage a broker for trading securities on UAE exchanges or international markets through a UAE-licensed broker. The agreement covers crucial aspects such as account opening procedures, trading permissions, fee structures, risk disclosures, and compliance requirements. It must align with UAE regulatory requirements while protecting both the broker's and client's interests, incorporating necessary provisions for anti-money laundering compliance and market conduct regulations.
Suggested Sections

1. Parties: Identification of the licensed broker and the client, including full legal names and addresses

2. Background: Context of the agreement, broker's licensing status, and general purpose of the arrangement

3. Definitions: Key terms used throughout the agreement, including regulatory terminology and market-specific definitions

4. Scope of Services: Detailed description of brokerage services to be provided, including trading, advisory, and account management services

5. Client Classification: Classification of the client as per SCA regulations (retail/professional/institutional investor)

6. Account Opening and Management: Procedures for opening and maintaining trading accounts, including documentation requirements

7. Trading Instructions: Process for receiving, executing, and confirming trading orders

8. Fees and Commissions: Detailed breakdown of all applicable fees, commissions, and charges

9. Client Obligations: Client's responsibilities including providing accurate information and maintaining sufficient funds

10. Broker Obligations: Broker's duties including execution, reporting, and maintaining confidentiality

11. Risk Disclosure: Comprehensive disclosure of investment risks and market volatility

12. Compliance and AML: Anti-money laundering and regulatory compliance requirements

13. Representations and Warranties: Standard legal representations from both parties

14. Liability and Indemnification: Limitations of broker's liability and client indemnification provisions

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

16. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction for disputes

17. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Online Trading Services: Terms specific to electronic trading platforms, used when offering online trading services

2. Margin Trading: Terms for margin trading facilities, included when margin trading is offered

3. Research Services: Terms relating to research and analysis services, included when offering investment research

4. Portfolio Management: Terms for discretionary portfolio management, included when offering managed accounts

5. Islamic Trading Account: Specific terms for Shariah-compliant trading, included for Islamic trading accounts

6. International Trading: Terms for trading in international markets, included when offering cross-border trading

7. Joint Account Provisions: Special terms for joint accounts, included when allowing joint account holders

Suggested Schedules

1. Schedule 1 - Fee Schedule: Detailed breakdown of all fees, commissions, and charges

2. Schedule 2 - Trading Powers: Specific trading permissions and limitations

3. Schedule 3 - Risk Disclosure Statement: Detailed risk warnings and market-specific risks

4. Schedule 4 - Account Opening Forms: Standard account opening forms and KYC documentation

5. Schedule 5 - Authorized Persons: List of persons authorized to trade on behalf of the client

6. Appendix A - Trading Procedures: Detailed operational procedures for trading

7. Appendix B - Electronic Trading Terms: Specific terms and conditions for electronic trading platforms

8. Appendix C - Market-Specific Requirements: Requirements specific to different markets or exchanges

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

Relevant legal definitions
Relevant Industries

Financial Services

Banking

Investment Management

Securities Trading

Wealth Management

Corporate Services

Professional Services

Investment Banking

Asset Management

Private Equity

Family Offices

Relevant Teams

Legal

Compliance

Risk Management

Trading

Operations

Client Relations

Account Management

Finance

Business Development

Investment Advisory

Due Diligence

Corporate Governance

Internal Audit

Customer Service

Documentation

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Operating Officer

Head of Legal

Legal Counsel

Compliance Officer

Risk Manager

Investment Manager

Portfolio Manager

Trading Manager

Account Manager

Client Relationship Manager

Operations Manager

Financial Controller

Business Development Manager

Head of Trading

Senior Broker

Investment Advisor

Corporate Secretary

Due Diligence Officer

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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