Split Commission Agreement Template for Switzerland

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Key Requirements PROMPT example:

Split Commission Agreement

"I need a Split Commission Agreement under Swiss law for a wealth management arrangement between our firm and an external financial advisor, where we will share client fees 70-30, with specific provisions for FINMA compliance and client data protection."

Document background
The Split Commission Agreement is essential for business arrangements where multiple parties collaborate in revenue-generating activities and need to share resulting commissions. This document is particularly crucial in Switzerland's sophisticated financial services sector, where complex commission-sharing arrangements are common and must comply with strict regulatory requirements. The agreement typically details the specific commission split ratios, calculation methodologies, payment procedures, and compliance obligations under Swiss law. It's commonly used in situations involving brokers, agents, financial advisors, or sales representatives who collaborate on transactions and need a formal framework for commission sharing. The document must align with Swiss financial regulations, including the Financial Services Act (FinSA) and the Swiss Code of Obligations, making it particularly relevant for regulated financial activities in Switzerland.
Suggested Sections

1. Parties: Identification of all parties involved in the commission splitting arrangement

2. Background: Context of the business relationship and purpose of the agreement

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

4. Commission Structure: Detailed explanation of how commissions are calculated and the split ratios between parties

5. Payment Terms: Timing and method of commission payments, including currency and payment procedures

6. Reporting Requirements: Requirements for reporting commission earnings, calculations, and distributions

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

8. Compliance Requirements: Regulatory compliance obligations under Swiss law, including financial services regulations

9. Confidentiality: Provisions for handling confidential information and data protection

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

11. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction for disputes

12. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Non-Compete Provisions: Restrictions on competitive activities, used when parties may have access to sensitive client information

2. Client Ownership: Provisions defining client relationship ownership, relevant when multiple parties have client contact

3. Regulatory Authorizations: Required when any party needs specific licenses or authorizations for the activities

4. Insurance Requirements: Specifications for required insurance coverage, relevant for high-value transactions

5. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term arrangements

6. Audit Rights: Procedures for auditing commission calculations, important for complex commission structures

Suggested Schedules

1. Commission Calculation Schedule: Detailed methodology and examples of commission calculations

2. Products and Services Schedule: List of products or services covered by the commission arrangement

3. Reporting Template: Standard format for periodic commission reports

4. Compliance Procedures: Detailed procedures for ensuring regulatory compliance

5. Authorized Representatives: List of designated contacts for each party

6. Service Level Requirements: Performance standards and metrics, if applicable

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

Investment Banking

Wealth Management

Commercial Banking

Asset Management

Securities Trading

Commodity Trading

Business Consulting

Sales and Distribution

Relevant Teams

Legal

Finance

Compliance

Sales

Business Development

Operations

Revenue Management

Partner Management

Account Management

Risk Management

Commercial Operations

Relevant Roles

Financial Advisor

Broker

Sales Manager

Business Development Manager

Commission Controller

Compliance Officer

Legal Counsel

Finance Director

Sales Agent

Relationship Manager

Partnership Manager

Revenue Manager

Account Executive

Commercial Director

Operations 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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