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The Investment Broker Agreement is a crucial document used to establish and govern the relationship between licensed investment brokers and their clients in Hong Kong. It is required for compliance with the Securities and Futures Ordinance (Cap. 571) and various SFC regulations. The agreement is essential when a broker begins providing investment services to new clients, whether individual, corporate, or institutional. It encompasses comprehensive terms covering service scope, regulatory compliance, risk disclosures, client asset handling, and fee structures. The document must reflect specific Hong Kong regulatory requirements, including SFC licensing conditions, client money rules, and mandatory risk disclosures. It serves as the foundational document for the broker-client relationship and provides legal protection for both parties while ensuring regulatory compliance in Hong Kong's sophisticated financial markets.

1. Parties: Identification of the investment broker and the client, including licensing details of the broker

2. Background: Context of the agreement and brief description of the services to be provided

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

4. Appointment and Scope of Services: Formal appointment of the broker and detailed description of authorized services

5. Regulatory Compliance: Broker's obligations regarding SFC regulations and other applicable laws

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

7. Broker Authority and Instructions: Scope of broker's authority and procedures for receiving/acting on client instructions

8. Fees and Commissions: Detailed fee structure, commission rates, and payment terms

9. Client Assets and Funds: Handling and safeguarding of client money and securities

10. Risk Disclosures: Mandatory risk warnings and disclosures required by regulations

11. Confidentiality and Data Privacy: Obligations regarding client information and compliance with privacy laws

12. Liability and Indemnification: Limitations of broker's liability and client indemnification provisions

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

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