Commission Agreement Between Brokers Template for Switzerland

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Key Requirements PROMPT example:

Commission Agreement Between Brokers

"I need a Commission Agreement Between Brokers for a Swiss real estate brokerage arrangement, where the introducing broker will receive 25% of commissions for successful referrals, with the agreement starting from March 1, 2025."

Document background
The Commission Agreement Between Brokers is essential for formalizing business relationships between brokers operating in the Swiss financial market. This document is typically used when two or more brokers wish to establish a formal arrangement for sharing commissions on referred business, joint ventures, or collaborative financial services. It addresses key aspects such as commission structures, payment terms, regulatory compliance requirements under Swiss law, and service level expectations. The agreement is particularly relevant in the context of Switzerland's sophisticated financial services industry, where clear documentation of inter-broker relationships is crucial for regulatory compliance and risk management. It incorporates necessary provisions to comply with Swiss financial regulations, including the Federal Act on Financial Services (FinSA) and the Federal Act on Financial Market Infrastructures (FMIA), while providing a robust framework for commission-based collaborations between brokers.
Suggested Sections

1. Parties: Identification of the brokers entering into the agreement, including their full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement and brief description of the brokers' business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of the brokerage services covered by the commission arrangement

5. Commission Structure: Framework for how commissions will be calculated and earned

6. Payment Terms: Terms and conditions for commission payments, including timing and method of payment

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

8. Compliance Requirements: Obligations regarding Swiss financial regulations, anti-money laundering laws, and other applicable regulations

9. Confidentiality: Provisions for handling confidential information between brokers

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

11. Dispute Resolution: Procedures for resolving disputes under Swiss law

12. Governing Law: Specification of Swiss law as the governing law and jurisdiction

13. General Provisions: Standard contractual provisions including notices, amendments, and severability

Optional Sections

1. Non-Compete Clause: Restrictions on competing activities, if applicable to the specific relationship

2. Sub-Brokers: Terms for engaging sub-brokers or third parties, if permitted

3. Insurance Requirements: Specific insurance obligations beyond standard requirements

4. Marketing and Branding: Guidelines for using each other's brands and marketing materials

5. Data Protection: Additional provisions for handling personal data under Swiss data protection laws

6. Force Majeure: Provisions for unforeseen circumstances affecting performance

7. Training and Support: Terms for any training or support services provided between brokers

Suggested Schedules

1. Schedule 1: Commission Rates: Detailed commission rates for different types of transactions or services

2. Schedule 2: Service Level Agreement: Specific performance metrics and service standards

3. Schedule 3: Compliance Procedures: Detailed procedures for ensuring regulatory compliance

4. Schedule 4: Reporting Templates: Standard formats for commission reports and calculations

5. Schedule 5: Territory Definition: Definition of geographical or market segments covered by the agreement

6. Appendix A: Required Documentation: List of required documentation for commission claims

7. Appendix B: Contact Details: Key contacts and escalation procedures 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

Real Estate

Securities Trading

Commodity Trading

Investment Banking

Wealth Management

Asset Management

Corporate Finance

Private Banking

Relevant Teams

Legal

Compliance

Finance

Operations

Business Development

Risk Management

Partner Relations

Commission Administration

Client Services

Regulatory Affairs

Relevant Roles

Broker

Financial Intermediary

Compliance Officer

Legal Counsel

Chief Financial Officer

Business Development Manager

Partnership Manager

Commission Manager

Relationship Manager

Head of Brokerage

Risk Manager

Operations Manager

Finance Director

Managing Partner

Chief Executive 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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