Broker Contract Commission Template for Australia

The Broker Contract Commission agreement is a crucial document for financial services businesses operating in Australia that engage brokers to distribute their products or services. This agreement type is commonly used by financial institutions, insurance companies, and other financial service providers to establish formal arrangements with brokers, ensuring compliance with Australian regulatory requirements including the Corporations Act 2001 and ASIC regulations. The document typically includes detailed commission structures, payment terms, compliance obligations, reporting requirements, and risk management provisions. It's particularly important in the context of recent regulatory changes following the Hayne Royal Commission, which has placed increased scrutiny on commission arrangements in the financial services sector. The agreement should be regularly reviewed and updated to ensure ongoing compliance with evolving regulatory requirements and industry standards.

1. Parties: Identification of the principal company and the broker, including ACN/ABN and licensing details

2. Background: Context of the agreement, relationship between parties, and broker's general role

3. Definitions: Key terms used throughout the agreement, including types of products, commission types, and relevant regulatory terms

4. Appointment and Scope: Terms of broker appointment, territory/jurisdiction, and authorized activities

5. Broker Obligations: Core responsibilities, compliance requirements, and service standards

6. Commission Structure: Detailed explanation of commission calculations, rates, and payment terms

7. Payment Terms: Timing of payments, payment methods, and handling of commission adjustments

8. Compliance and Licensing: Regulatory compliance requirements, maintaining licenses, and following industry standards

9. Reporting and Records: Record-keeping requirements, reporting obligations, and audit rights

10. Confidentiality: Protection of confidential information and client data

11. Term and Termination: Duration of agreement and grounds for termination

12. Dispute Resolution: Process for handling disputes between parties

13. General Provisions: Standard contractual terms including governing law, notices, and amendments