Introducing Broker Agreement Template for Australia

The Introducing Broker Agreement is essential for financial services businesses operating in Australia that wish to establish formal referral relationships. This document is typically used when a broker wants to introduce clients to a financial institution or platform provider while maintaining compliance with Australian regulatory requirements. The agreement covers crucial aspects such as licensing obligations, commission structures, and compliance with ASIC regulations, AML/CTF requirements, and privacy laws. It's particularly relevant in situations where the introducing broker acts as an intermediary without holding client funds or executing trades directly. The document includes detailed provisions for client onboarding, commission calculations, regulatory compliance, and risk management, making it suitable for various financial service arrangements within the Australian jurisdiction.

1. Parties: Identification of the introducing broker and the principal firm, including their registered details and ABN/ACN

2. Background: Context of the agreement, brief description of parties' businesses, and purpose of the arrangement

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and interpretation clauses

4. Appointment and Scope: Terms of the broker's appointment, territory, exclusivity/non-exclusivity, and scope of authorized activities

5. Regulatory Compliance: Obligations regarding licenses, permits, and compliance with applicable laws and regulations

6. Duties and Obligations: Specific responsibilities of the introducing broker and the principal firm

7. Client Introduction Process: Procedures for introducing clients, minimum information requirements, and acceptance criteria

8. Compensation: Commission structure, calculation methods, payment terms, and conditions

9. Compliance with AML/CTF Requirements: Anti-money laundering and counter-terrorism financing obligations and procedures

10. Confidentiality: Protection of confidential information and trade secrets

11. Privacy and Data Protection: Handling of personal information and compliance with privacy laws

12. Representations and Warranties: Key promises and assurances made by each party

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

14. Post-Termination Obligations: Ongoing obligations and restrictions after agreement ends

15. Dispute Resolution: Process for resolving disputes between parties

16. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law