Broker Dealer Contract Template for Malaysia

The Broker Dealer Contract serves as the foundational agreement between licensed securities broker-dealers and their clients in Malaysia, establishing the framework for securities trading and related financial services. This document is essential for compliance with Malaysian regulatory requirements, particularly under the Capital Markets and Services Act 2007 and Securities Commission Malaysia guidelines. It is typically used when establishing new trading relationships or updating existing arrangements to reflect current regulatory requirements. The contract covers crucial aspects including account opening procedures, trading authorizations, fee structures, risk disclosures, compliance obligations, and dispute resolution mechanisms. It includes specific provisions required by Malaysian law and incorporates necessary consumer protection measures while detailing the rights, obligations, and responsibilities of both parties in the context of securities trading and investment services.

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

2. Background: Context of the agreement, including broker-dealer's licensing status and general purpose of the arrangement

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

4. Appointment and Scope of Services: Detailed description of broker-dealer services, including trading, advisory, and other authorized activities

5. Regulatory Compliance: Obligations to comply with Malaysian securities laws, particularly the Capital Markets and Services Act 2007

6. Client Representations and Warranties: Client's confirmations regarding their status, capacity, and understanding of risks

7. Broker-Dealer Representations and Warranties: Broker-dealer's confirmations regarding licensing, expertise, and capability

8. Account Opening and Maintenance: Procedures for opening and maintaining trading accounts

9. Trading Instructions and Execution: Process for placing and executing trades, including communication methods

10. Fees and Charges: Comprehensive fee structure, including brokerage fees, transaction charges, and payment terms

11. Risk Disclosure: Mandatory risk warnings and disclosures as required by Malaysian regulations

12. Confidentiality: Protection of confidential information and compliance with data protection laws

13. Term and Termination: Duration of agreement and circumstances for termination

14. Dispute Resolution: Procedures for handling disputes, including jurisdiction and governing law

15. General Provisions: Standard contractual provisions including notices, amendments, and severability