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Financial Agency Agreement for Singapore

Financial Agency Agreement Template for Singapore

This is a legally binding agreement governed by Singapore law that establishes an agency relationship for financial services. It complies with the Securities and Futures Act and Financial Advisers Act, setting out the terms under which an agent can represent and act on behalf of a financial institution. The agreement covers crucial aspects including licensing requirements, regulatory compliance, compensation structure, and operational parameters within Singapore's robust financial regulatory framework.

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What is a Financial Agency Agreement?

The Financial Agency Agreement is essential for establishing formal representation in Singapore's financial services sector. It's commonly used when financial institutions wish to expand their distribution channels through appointed agents. The agreement ensures compliance with Singapore's strict regulatory requirements, including MAS guidelines and the Securities and Futures Act. It details the scope of authority, commission structures, compliance obligations, and risk management measures. This document is crucial for protecting both parties' interests while maintaining regulatory compliance in Singapore's sophisticated financial markets.

What sections should be included in a Financial Agency Agreement?

1. Parties: Identification of the principal and agent, including registration details

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

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of agent appointment and scope of authority

5. Duties and Responsibilities: Specific obligations of both principal and agent

6. Compensation: Fee structure, commission rates, and payment terms

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

8. Compliance: Regulatory compliance obligations including SFA, FAA, and MAS requirements

What sections are optional to include in a Financial Agency Agreement?

1. Non-Competition: Restrictions on agent's activities in sensitive markets or with specific clients

2. Intellectual Property: IP rights and usage provisions for proprietary systems or materials

3. Force Majeure: Provisions for unforeseen circumstances in long-term commitments

What schedules should be included in a Financial Agency Agreement?

1. Commission Structure: Detailed breakdown of commission rates and calculations

2. Territory Schedule: Geographic areas covered by the agreement

3. Product Schedule: List of financial products covered under the agreement

4. Compliance Procedures: Detailed compliance requirements and procedures under SFA, FAA, and MAS guidelines

5. Service Level Agreement: Performance metrics and service standards

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

Agency Agreement

Cost

Free to use
Relevant legal definitions







































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Industries

Securities and Futures Act (SFA): Primary legislation governing securities and financial services activities in Singapore. Covers licensing requirements for financial agents/intermediaries, trading activities, and disclosure obligations.

Financial Advisers Act (FAA): Key legislation regulating financial advisory services in Singapore, including licensing requirements and standards of conduct for financial advisers.

Singapore Contract Law: Fundamental contract law principles based on Common Law, including the Unfair Contract Terms Act and Electronic Transactions Act for contract formation and execution.

MAS Guidelines: Regulatory guidelines issued by the Monetary Authority of Singapore covering standards of conduct, fit and proper criteria, and AML/CFT requirements for financial institutions and advisers.

Personal Data Protection Act (PDPA): Legislation governing the collection, use, and disclosure of personal data, including consent requirements and data protection obligations.

Agency Law: Common law principles governing the relationship between principal and agent, including duties, responsibilities, and scope of authority.

Competition Act: Legislation ensuring fair competition and preventing anti-competitive practices in business relationships.

Consumer Protection Legislation: Laws protecting consumer interests in financial transactions and services, including fair trading practices and consumer rights.

Corporate Regulatory Requirements: Various corporate compliance obligations under Singapore company law and regulatory framework applicable to financial agencies.

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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