Introducing Broker Contract Template for Switzerland

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Key Requirements PROMPT example:

Introducing Broker Contract

"I need a Swiss law Introducing Broker Contract for my wealth management firm to engage independent brokers who will introduce high-net-worth clients, with specific provisions for commission tiers based on AUM and a strong focus on FINMA compliance requirements."

Document background
The Introducing Broker Contract is essential for financial institutions operating in Switzerland that wish to expand their client base through third-party introducers. This document is particularly relevant in the context of Switzerland's sophisticated financial services industry and must comply with stringent regulatory requirements including FinSA, FinIA, and AMLA. The contract establishes the framework for client introductions, defines the scope of services, sets out compensation structures, and addresses crucial aspects such as regulatory compliance, data protection, and risk allocation. It is typically used when a financial institution wants to formalize its relationship with external brokers who will introduce potential clients, ensuring both parties understand their obligations and responsibilities under Swiss law. The document includes detailed provisions for client onboarding procedures, commission arrangements, and compliance requirements specific to the Swiss financial services sector.
Suggested Sections

1. Parties: Identification of the introducing broker and the receiving firm, including their regulatory status and contact details

2. Background: Context of the agreement and brief description of the parties' businesses and intention to enter into an introducing broker relationship

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. Scope of Services: Detailed description of the introducing broker's services, including client introduction process and limitations

5. Regulatory Compliance: Obligations regarding compliance with Swiss financial regulations, including FinSA, FinIA, and AMLA requirements

6. Representations and Warranties: Statements about the parties' capacity, authority, and regulatory status

7. Duties and Responsibilities: Specific obligations of both parties, including communication protocols and service standards

8. Compensation: Fee structure, calculation methods, payment terms, and conditions for commission

9. Client Ownership and Data Protection: Rules regarding client relationships, data handling, and compliance with FADP

10. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

11. Confidentiality: Obligations regarding the protection of confidential information

12. Indemnification and Liability: Allocation of risks and responsibilities between parties

13. General Provisions: Standard clauses including notices, amendments, governing law, and jurisdiction

Optional Sections

1. Non-Solicitation: Restrictions on soliciting clients or employees, included when parties want to protect their business relationships

2. Marketing and Branding: Rules for using each other's brands and marketing materials, included when joint marketing is contemplated

3. Training and Support: Details of training provided by the receiving firm, included when significant operational support is required

4. Insurance Requirements: Specific insurance coverage requirements, included when additional risk management is needed

5. Dispute Resolution: Alternative dispute resolution procedures, included when parties prefer arbitration or mediation

6. Force Majeure: Provisions for unforeseen circumstances, included when parties want specific protection against external events

Suggested Schedules

1. Schedule 1 - Service Level Agreement: Detailed operational procedures, response times, and service standards

2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates, tiers, and calculation methods

3. Schedule 3 - Compliance Procedures: Specific compliance requirements and procedures for client onboarding

4. Schedule 4 - Required Documentation: List of documents required for client introduction and verification

5. Schedule 5 - Approved Marketing Materials: Templates and guidelines for marketing and client communications

6. Appendix A - Contact Details: Key contact persons and escalation procedures

7. Appendix B - Technical Requirements: IT systems, security requirements, and data transmission protocols

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

Banking

Wealth Management

Investment Banking

Securities Trading

Asset Management

Financial Technology

Professional Services

Insurance

Relevant Teams

Legal

Compliance

Business Development

Risk Management

Operations

Client Relations

Wealth Management

Financial Services

Broker Relations

Product Development

Relevant Roles

Compliance Officer

Legal Counsel

Business Development Manager

Relationship Manager

Head of Intermediaries

Risk Manager

Chief Operating Officer

Head of Wealth Management

Financial Services Director

Broker Relations Manager

Business Development Director

Chief Compliance Officer

Head of Legal

Managing Director

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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