Wholesale Broker Agreement Template for Australia

The Wholesale Broker Agreement is a critical document used in the Australian financial services sector to establish and regulate the relationship between financial institutions and wholesale brokers. This agreement is essential when engaging brokers to facilitate wholesale financial product transactions, ensuring compliance with the Corporations Act 2001 and ASIC requirements. The document covers crucial aspects including broker authorization, compliance obligations, risk management, remuneration structures, and reporting requirements. It is specifically designed for the Australian regulatory environment, incorporating necessary provisions for AML/CTF compliance, privacy protection, and financial services licensing. The agreement is particularly important for institutions dealing with sophisticated investors and wholesale clients, requiring careful attention to regulatory thresholds and compliance obligations.

1. Parties: Identifies the principal and the wholesale broker, including their ACN/ABN and registered addresses

2. Background: Outlines the context of the agreement, including the broker's qualifications and authorizations

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Appointment and Scope: Details the broker's appointment, territory, and authorized activities

5. Regulatory Compliance: Outlines obligations under relevant financial services laws and regulations

6. Broker Obligations: Specifies the broker's duties, responsibilities, and service standards

7. Principal's Obligations: Details the principal's responsibilities and support commitments

8. Remuneration: Specifies commission structures, payment terms, and calculation methods

9. Compliance and Reporting: Details reporting requirements, audit rights, and compliance monitoring

10. Risk Management: Outlines risk management procedures and requirements

11. Confidentiality: Addresses handling of confidential information and trade secrets

12. Intellectual Property: Covers ownership and usage rights of intellectual property

13. Term and Termination: Specifies agreement duration and termination provisions

14. Indemnities and Insurance: Details insurance requirements and mutual indemnification obligations

15. Dispute Resolution: Outlines procedures for handling disputes between parties

16. General Provisions: Includes standard boilerplate clauses like notices, assignment, and governing law