Sub Broker Agreement Template for Switzerland

The Sub Broker Agreement is essential for financial institutions operating in Switzerland who wish to expand their distribution network through appointed sub-brokers. This document is typically used when a licensed broker or financial institution wants to delegate certain brokerage activities to another party while maintaining regulatory compliance and control. The agreement must align with Swiss financial regulations, including FINMA requirements, FinSA/FIDLEG, and anti-money laundering laws. It covers crucial aspects such as appointment terms, authorized activities, compensation structures, compliance obligations, and risk management procedures. The document is particularly important in ensuring clear accountability and maintaining regulatory compliance in multi-tiered brokerage relationships.

1. Parties: Identification of the Primary Broker and Sub-Broker, including their regulatory status and contact details

2. Background: Context of the agreement, including the Primary Broker's authority to appoint sub-brokers and the intended business relationship

3. Definitions: Key terms used throughout the agreement, including regulatory terminology

4. Appointment and Scope: Terms of appointment, territory, and scope of authorized activities

5. Regulatory Compliance: Obligations regarding licenses, permits, and compliance with Swiss financial regulations

6. Sub-Broker Obligations: Core duties, service standards, and operational requirements

7. Primary Broker Obligations: Support, training, and resources to be provided to the Sub-Broker

8. Commission and Payment Terms: Commission structure, calculation method, payment terms, and conditions

9. Compliance with AML Requirements: Anti-money laundering obligations and procedures

10. Confidentiality and Data Protection: Handling of confidential information and compliance with Swiss data protection laws

11. Non-Competition and Non-Solicitation: Restrictions on competitive activities and client solicitation

12. Representations and Warranties: Key assurances from both parties

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

14. Term and Termination: Duration, renewal, and termination provisions

15. Post-Termination Obligations: Duties and restrictions following agreement termination

16. General Provisions: Standard clauses including governing law, jurisdiction, and entire agreement