Intermediary Fee Agreement Template for England and Wales

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Key Requirements PROMPT example:

Intermediary Fee Agreement

"I need an Intermediary Fee Agreement for my consulting firm acting as an intermediary between UK tech companies and potential investors in Asia, with a success-based fee structure and strict confidentiality provisions to be effective from March 2025."

Document background

The Intermediary Fee Agreement is essential when establishing a formal relationship between intermediaries and their clients in England and Wales. This document is commonly used when an intermediary facilitates transactions, introduces parties, or provides advisory services for a fee. The agreement details payment structures, which may include fixed fees, commissions, or success-based compensation. It incorporates relevant regulatory requirements, particularly those from the Employment Agencies Act 1973 and related regulations, providing clear guidelines for service delivery and payment terms.

Suggested Sections

1. Parties: Identification and details of the intermediary and client

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement including relevant legislation references

4. Services: Description of intermediary services to be provided

5. Fees and Payment Terms: Fee structure, payment schedule, invoicing requirements and VAT provisions

6. Duration and Termination: Term of agreement and termination provisions

7. Obligations of the Intermediary: Key responsibilities and duties of the intermediary

8. Obligations of the Client: Key responsibilities and duties of the client

9. Confidentiality: Provisions regarding confidential information and trade secrets

10. Data Protection: Compliance with GDPR and Data Protection Act 2018

11. Liability and Indemnity: Limitations of liability and indemnification provisions

12. General Provisions: Standard boilerplate clauses including governing law and jurisdiction

Optional Sections

1. Success Fee Provisions: Additional fees based on successful outcomes - used when agreement includes performance-based compensation

2. Exclusivity: Terms regarding exclusive arrangements - used when intermediary has exclusive rights

3. International Provisions: Terms for cross-border activities - used when services span multiple jurisdictions

4. Anti-Money Laundering: Compliance with Money Laundering Regulations - used for financial services intermediaries

5. Insurance Requirements: Specific insurance obligations - used when particular insurance coverage is required

Suggested Schedules

1. Schedule 1 - Fee Schedule: Detailed breakdown of fees, calculation methods and payment terms

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

3. Schedule 3 - Compliance Requirements: Detailed compliance obligations including relevant legislation and regulations

4. Appendix A - Required Forms: Standard forms and documentation required for services

5. Appendix B - Data Processing Agreement: Detailed terms for handling personal data in compliance with GDPR

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Relevant Teams

Relevant Roles

Industries

Agency Workers Regulations 2010: Primary legislation governing the rights of agency workers and obligations of employment intermediaries in the UK

Employment Agencies Act 1973: Foundational legislation regulating the conduct of employment agencies and employment businesses in the UK

Conduct of Employment Agencies and Employment Businesses Regulations 2003: Detailed regulations specifying how employment agencies and businesses must operate, including fee structures and contractual requirements

Supply of Goods and Services Act 1982: Legislation governing contracts for the supply of services, including implied terms about quality and performance

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of a contract to which they are not directly party

Consumer Rights Act 2015: Key consumer protection legislation applicable when dealing with individual clients rather than businesses

Late Payment of Commercial Debts (Interest) Act 1998: Legislation governing interest charges on late commercial payments and compensation for debt recovery costs

Value Added Tax Act 1994: Legislation governing VAT obligations and considerations in commercial agreements

UK General Data Protection Regulation: Post-Brexit data protection legislation governing how personal data must be handled and processed

Data Protection Act 2018: UK's implementation of data protection standards, working alongside UK GDPR

Money Laundering Regulations 2017: Regulations requiring businesses to implement controls to prevent money laundering and report suspicious activities

Proceeds of Crime Act 2002: Legislation dealing with money laundering and proceeds of crime, including reporting obligations

Financial Services and Markets Act 2000: Primary legislation governing financial services activities and regulated financial intermediaries

Insurance Distribution Directive: EU-derived regulations governing insurance intermediaries and distribution of insurance products

Estate Agents Act 1979: Legislation governing estate agency work and related intermediary services in property transactions

Contract Law Principles: Common law principles governing contract formation including offer, acceptance, consideration, and intention to create legal relations

Agency Law Principles: Common law principles governing agency relationships, authority, and duties between principal and agent

Fiduciary Duties: Common law principles establishing special obligations of trust and loyalty in certain business relationships

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Authors

Alex Denne

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