Broker Client Agreement Template for New Zealand

The Broker Client Agreement serves as the foundational document governing the relationship between financial brokers and their clients in New Zealand. This agreement is essential for any broker providing financial services under New Zealand jurisdiction and must comply with the Financial Markets Conduct Act 2013, the Financial Service Providers (Registration and Dispute Resolution) Act 2008, and other relevant legislation. The document covers crucial aspects including service scope, client classification, risk disclosures, fee structures, and regulatory compliance requirements. It is designed to protect both parties' interests while ensuring transparency and compliance with New Zealand's financial regulatory framework. The agreement is particularly important as it establishes the legal basis for trading activities, client money handling, and dispute resolution procedures.

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

2. Background: Context of the agreement, broker's regulatory status, and general purpose of the relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of brokerage services provided, including any limitations

5. Client Classification: Classification of the client (retail/wholesale) and corresponding protections

6. Representations and Warranties: Key statements and guarantees made by both parties

7. Account Operation: Rules and procedures for operating the trading account

8. Orders and Transactions: Process for placing and executing orders

9. Fees and Charges: Description of all fees, commissions, and charges applicable

10. Client Money and Assets: How client funds and assets are handled and protected

11. Risk Disclosures: Mandatory risk warnings and disclosures

12. Conflicts of Interest: How potential conflicts are identified and managed

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

14. Privacy and Data Protection: How client data is collected, used, and protected

15. Complaints and Dispute Resolution: Process for handling complaints and resolving disputes

16. General Provisions: Standard legal provisions including governing law, notices, and amendments