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Broker Agreement for Singapore

Broker Agreement Template for Singapore

A comprehensive legal agreement governed by Singapore law that establishes the terms and conditions between a licensed broker and their client. The document outlines the scope of services, commission structures, regulatory compliance requirements under Singapore's Securities and Futures Act (SFA) and Financial Advisers Act (FAA), and the respective obligations of both parties. It incorporates specific provisions required by the Monetary Authority of Singapore (MAS) and addresses risk management, client money handling, and data protection requirements.

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What is a Broker Agreement?

The Broker Agreement serves as the foundational document governing the professional relationship between licensed brokers and their clients in Singapore. This agreement is essential for compliance with Singapore's regulatory framework, particularly the Securities and Futures Act and MAS requirements. The document typically covers service scope, commission structures, compliance obligations, risk disclosures, and operational procedures. A well-structured Broker Agreement is crucial for establishing clear expectations and protecting both parties' interests while ensuring regulatory compliance.

What sections should be included in a Broker Agreement?

1. Parties: Identification of broker and client, including registration details and licenses

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of broker appointment and services to be provided

5. Broker Obligations: Duties, responsibilities, and standard of service

6. Client Obligations: Client responsibilities and commitments

7. Fees and Commission: Payment terms, commission structure, and expenses

8. Compliance: Regulatory compliance requirements and obligations

9. Term and Termination: Duration and termination provisions

What sections are optional to include in a Broker Agreement?

1. Non-Competition: Restrictions on competitive activities when exclusivity is required

2. White Labeling: Terms for rebranding services when broker services will be white-labeled

3. Technology Services: Terms for trading platform or technology provision when electronic trading platforms are provided

4. Research Services: Terms for providing research and analysis when research services are included

What schedules should be included in a Broker Agreement?

1. Fee Schedule: Detailed commission rates and fee structures

2. Service Level Agreement: Specific performance metrics and service standards

3. Compliance Requirements: Detailed regulatory requirements and procedures

4. Account Opening Forms: Standard forms for client onboarding

5. Risk Disclosure Statement: Required risk disclosures under Singapore law

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions

































Clauses


































Industries

Securities and Futures Act (SFA): Primary legislation governing securities, futures and derivatives markets, including licensing requirements for brokers and market conduct rules

Financial Advisers Act (FAA): Regulates financial advisory services in Singapore, including requirements for providing financial advice and selling investment products

Companies Act: Main legislation governing corporate entities in Singapore, relevant for corporate structure and governance requirements

Contract Law of Singapore: Common law principles governing formation and enforcement of contracts in Singapore

Civil Law Act: Statutory framework supplementing common law principles in Singapore's civil law system

MAS Guidelines and Regulations: Regulatory directives and guidelines issued by the Monetary Authority of Singapore for financial institutions and intermediaries

Securities and Futures (Licensing and Conduct of Business) Regulations: Detailed regulations specifying licensing requirements and business conduct standards for securities and futures trading

Financial Advisers Regulations: Specific regulations governing the conduct of financial advisory business

SGX Trading Rules: Rules and regulations governing trading activities on the Singapore Exchange

Anti-Money Laundering Framework: Includes Corruption, Drug Trafficking and Other Serious Crimes Act and Terrorism (Suppression of Financing) Act, governing AML/CFT requirements

Personal Data Protection Act 2012: Governs the collection, use, and disclosure of personal data by organizations

Capital Requirements Regulations: Specific capital adequacy and liquidity requirements for brokers operating in Singapore

Client Money Rules: Regulations governing the handling and segregation of client funds and assets

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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