Introducer Agreement Commission Template for England and Wales

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Key Requirements PROMPT example:

Introducer Agreement Commission

"I need an Introducer Agreement Commission for my fintech company to engage independent financial advisors who will refer potential clients to our investment platform, with a tiered commission structure based on investment value and a minimum commitment of 5 referrals per quarter starting January 2025."

Document background
The Introducer Agreement Commission is essential for businesses seeking to formalize referral relationships and commission structures under English and Welsh law. This agreement type is commonly used when establishing business relationships where one party introduces potential clients or opportunities to another in exchange for commission-based compensation. It addresses key aspects such as regulatory compliance, particularly relevant in regulated sectors, commission calculations, payment terms, and obligations of both parties. The document ensures clarity in the commercial relationship while maintaining compliance with relevant legislation including FSMA 2000 and FCA regulations where applicable.
Suggested Sections

1. Parties: Identification and details of the contracting parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of appointment and services to be provided

5. Commission Structure: Payment terms, calculation methods, and payment timing

6. Obligations of the Introducer: Duties and responsibilities of the introducing party

7. Term and Termination: Duration and termination provisions

Optional Sections

1. Regulatory Compliance: Required if introductions involve regulated activities - includes FCA compliance requirements and regulatory obligations

2. Non-Solicitation: Restrictions on soliciting introduced clients and protection of business relationships

3. White Labelling: Provisions for branding and marketing when services are provided under the introducer's brand

Suggested Schedules

1. Commission Rates Schedule: Detailed breakdown of commission structures and calculations

2. Service Level Agreement: Performance metrics and service standards

3. Compliance Requirements: Regulatory requirements and compliance procedures

4. Reporting Templates: Standard forms for reporting introductions and tracking commissions

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

Clauses
Relevant Industries
Relevant Teams
Relevant Roles
Industries

Financial Services and Markets Act 2000: Primary legislation governing financial services activities, including authorization requirements, regulated activities, and financial promotion rules

FCA Regulations: Regulatory framework including COBS rules, appointed representatives requirements, commission disclosure requirements, and client classification rules

Data Protection Legislation: UK GDPR and Data Protection Act 2018 requirements for handling and sharing personal data between parties

Bribery Act 2010: Anti-bribery provisions, corporate hospitality considerations, and commission structure compliance requirements

Consumer Protection Legislation: Consumer Rights Act 2015 and Consumer Contracts Regulations 2013, particularly relevant if introductions involve consumers

Money Laundering Regulations 2017: Due diligence requirements and reporting obligations, particularly relevant for financial services introductions

Contract Law: Common law principles, Law of Agency principles, and Misrepresentation Act 1967 governing contractual relationships

Competition Law: Competition Act 1998 and Enterprise Act 2002 provisions regarding restrictions on anti-competitive practices

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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