Sub Broker Agreement Template for Nigeria

The Sub Broker Agreement is essential for securities trading operations in Nigeria, where main brokers often expand their market reach through authorized sub-brokers. This document is required when a licensed securities broker wishes to engage a sub-broker to conduct securities trading activities under their supervision. The agreement must comply with the Investment and Securities Act 2007, SEC Nigeria regulations, and Nigerian Stock Exchange rules. It typically includes comprehensive details about trading permissions, compliance requirements, risk management procedures, compensation arrangements, and reporting obligations. The document is particularly important in the Nigerian context due to the stringent regulatory framework governing securities market intermediaries and the need to maintain proper oversight of all trading activities.

1. Parties: Identification of the main broker and sub-broker, including licensing details and registered addresses

2. Background: Context of the agreement, including the main broker's authority and sub-broker's qualifications

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

4. Appointment and Scope: Terms of appointment and authorized activities of the sub-broker

5. Regulatory Compliance: Obligations to comply with SEC rules, securities laws, and other applicable regulations

6. Sub-broker Obligations: Core duties, responsibilities, and service standards

7. Main Broker Obligations: Support, systems access, and resources provided by the main broker

8. Client Relationships: Guidelines for client engagement and relationship management

9. Compensation: Commission structure, payment terms, and fee arrangements

10. Compliance and Reporting: Regular reporting requirements and compliance monitoring procedures

11. Confidentiality: Protection of confidential information and trade secrets

12. Risk Management: Risk control measures and trading limits

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

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