Sub Broker Agreement Template for Denmark

The Sub Broker Agreement is a critical document used when a primary broker wishes to expand their business operations by appointing additional brokers to act on their behalf. This arrangement is common in Danish financial markets and must comply with Danish financial regulations and EU directives. The agreement provides a comprehensive framework for the relationship, covering essential aspects such as service scope, commission structures, compliance requirements, and operational procedures. It's particularly relevant in situations where the primary broker holds direct relationships with providers or institutions and wants to create a network of authorized sub-brokers to expand market reach while maintaining control and regulatory compliance. The document needs to align with the Danish Financial Business Act and related regulations, making it suitable for various financial intermediary relationships while ensuring proper oversight and risk management.

1. Parties: Identification of the primary broker and sub-broker, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, including the primary broker's authority to appoint sub-brokers and relevant regulatory authorizations

3. Definitions: Key terms used throughout the agreement, including 'Services', 'Territory', 'Commissions', 'Clients', etc.

4. Appointment and Scope: Terms of appointment, exclusivity/non-exclusivity, and detailed scope of authorized services

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

6. Sub-Broker Obligations: Detailed responsibilities, performance standards, and reporting requirements

7. Primary Broker Obligations: Support, training, and resources to be provided by the primary broker

8. Commission Structure: Calculation methodology, payment terms, and conditions for commission eligibility

9. Confidentiality: Protection of confidential information and trade secrets

10. Data Protection: GDPR compliance and data handling requirements

11. Non-Competition: Restrictions during and after the agreement term

12. Term and Termination: Duration, renewal provisions, and termination grounds

13. Post-Termination: Obligations and rights after agreement termination

14. General Provisions: Standard clauses including notices, amendments, governing law, etc.