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The Broker Dealer Contract serves as the primary agreement governing the relationship between licensed broker-dealers and their clients in the South African financial markets. This document is essential when establishing formal trading relationships and must comply with requirements set forth by the Financial Markets Act, FAIS Act, and other applicable regulations. It is used when a broker-dealer begins providing securities trading, execution, and related financial services to new clients, whether individual or institutional. The contract encompasses crucial elements such as service definitions, regulatory compliance obligations, risk disclosures, fee structures, and operational procedures. It reflects South Africa's robust regulatory framework and includes specific provisions for client protection, market conduct, and anti-money laundering compliance.

1. Parties: Identification of the broker-dealer and the client, including registration numbers and regulatory licenses

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

3. Definitions: Detailed definitions of terms used throughout the agreement, including regulatory terms

4. Scope of Services: Detailed description of broker-dealer services to be provided, including trading, execution, and any advisory services

5. Regulatory Compliance: Obligations regarding compliance with Financial Markets Act, FAIS Act, and other applicable regulations

6. Client Classifications: Classification of the client according to regulatory categories and resulting obligations

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

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

9. Client Obligations: Client's responsibilities including providing accurate information and maintaining regulatory compliance

10. Representations and Warranties: Standard and regulatory-specific representations from both parties

11. Confidentiality: Confidentiality obligations and data protection requirements under POPIA

12. Anti-Money Laundering: FICA compliance requirements and procedures

13. Termination: Terms and procedures for terminating the agreement

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

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