Broker To Broker Commission Agreement Generator for Australia

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Key Requirements PROMPT example:

Broker To Broker Commission Agreement

"I need a Broker to Broker Commission Agreement for a partnership between a mortgage broker and an insurance broker in Sydney, with a 60-40 commission split on cross-referrals and specific provisions for trailing commissions on mortgage products."

Document background
The Broker to Broker Commission Agreement is essential for financial services professionals operating in the Australian market who wish to establish formal commission-sharing arrangements with other licensed brokers. This document is particularly relevant when brokers collaborate on client referrals, joint ventures, or cross-border transactions within Australia's regulatory framework. It addresses key aspects such as commission calculations, payment terms, compliance with ASIC regulations, and professional obligations under Australian financial services laws. The agreement is designed to protect both parties' interests while ensuring transparency and regulatory compliance in commission-sharing arrangements. It's commonly used when brokers from different specializations or geographical areas collaborate to provide comprehensive financial services to clients.
Suggested Sections

1. Parties: Identification of the brokers entering into the agreement, including their legal names, ABN/ACN, addresses, and relevant license numbers

2. Background: Context of the agreement, including the nature of the broking services and the purpose of the commission-sharing arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement, including types of commission, clients, and services

4. Scope of Agreement: Defines the specific services and transactions covered by the commission-sharing arrangement

5. Regulatory Compliance: Acknowledgment and commitment to comply with relevant financial services laws and regulations

6. Commission Structure: Details of commission calculations, splitting arrangements, and payment terms

7. Payment Terms: Specifics about payment timing, method, and handling of disputes

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

9. Confidentiality: Protection of confidential information and client data

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

11. Dispute Resolution: Process for handling disagreements between the parties

12. General Provisions: Standard contract clauses including governing law, notices, and amendments

Optional Sections

1. Cross-Border Transactions: Include when brokers operate across different jurisdictions or states

2. Professional Indemnity Insurance: Details of required insurance coverage when dealing with high-value transactions

3. Marketing and Branding: Include when parties need to specify how each broker's brand can be used

4. Training Requirements: Include when specific training or certification requirements need to be maintained

5. Data Protection: Detailed section on data handling when extensive client information sharing is involved

6. Non-Solicitation: Include when parties want to prevent poaching of clients or staff

7. Force Majeure: Include for protection against unforeseen circumstances affecting performance

8. Assignment Rights: Include when transfer of rights needs to be specifically addressed

Suggested Schedules

1. Schedule 1 - Commission Rates: Detailed breakdown of commission rates for different products or services

2. Schedule 2 - Approved Products: List of financial products covered under the agreement

3. Schedule 3 - Service Level Requirements: Specific performance metrics and service standards

4. Schedule 4 - Compliance Procedures: Detailed compliance requirements and procedures

5. Schedule 5 - Reporting Templates: Standard forms for commission reporting and reconciliation

6. Appendix A - Required Licenses: Copies or details of required regulatory licenses and authorizations

7. Appendix B - Contact Details: Key personnel and escalation points for both parties

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
Clauses
Relevant Industries

Financial Services

Insurance

Mortgage and Lending

Investment Banking

Securities Trading

Wealth Management

Real Estate

Commercial Finance

Asset Management

Corporate Finance

Relevant Teams

Legal

Compliance

Finance

Operations

Risk Management

Business Development

Partnerships

Commission Processing

Broker Relations

Account Management

Relevant Roles

Financial Broker

Insurance Broker

Mortgage Broker

Securities Broker

Investment Broker

Commercial Finance Broker

Compliance Officer

Legal Counsel

Chief Financial Officer

Business Development Manager

Partnership Manager

Operations Manager

Risk Manager

Commission Manager

Relationship 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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