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The Stock Broker Agreement serves as the foundational document governing the relationship between licensed securities brokers and their clients in Nigeria. This agreement is essential for any securities trading relationship and is required by the Nigerian Securities and Exchange Commission (SEC) for compliance with the Investments and Securities Act 2007. The document encompasses crucial elements including trading authorizations, risk disclosures, fee structures, and regulatory compliance requirements. It is designed to protect both the broker and client while ensuring transparency and adherence to Nigerian securities laws and regulations. The agreement is particularly important given Nigeria's growing capital markets and the need for clear documentation of investment relationships and responsibilities.

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

2. Background: Context of the agreement, including broker's licensing status and client's intention to engage broker's services

3. Definitions: Key terms used throughout the agreement, including regulatory terminology and market-specific definitions

4. Scope of Services: Detailed description of brokerage services to be provided, including trading, advisory, and account management services

5. Client Classification: Classification of the client according to SEC rules (retail/institutional/professional)

6. Broker's Rights and Obligations: Comprehensive listing of broker's duties, responsibilities, and rights under the agreement

7. Client's Rights and Obligations: Client's responsibilities, including providing accurate information and maintaining sufficient funds

8. Trading Instructions: Procedures for placing, modifying, and canceling trade orders

9. Fees and Commissions: Detailed breakdown of all charges, commissions, and payment terms

10. Risk Disclosure: Mandatory risk warnings and acknowledgments required by SEC regulations

11. Compliance and AML Requirements: Anti-money laundering and KYC requirements, regulatory compliance obligations

12. Confidentiality: Provisions regarding the protection and handling of confidential information

13. Term and Termination: Duration of agreement and circumstances under which it can be terminated

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

15. Force Majeure: Provisions for unforeseen circumstances affecting performance

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