Document background
The Broker Engagement Letter is a critical document used in South Africa's regulated financial services sector to formalize the relationship between licensed brokers and their clients. It serves as the primary agreement outlining the terms under which the broker will provide services, ensuring compliance with the Financial Advisory and Intermediary Services (FAIS) Act and other relevant South African legislation. This document is typically used at the commencement of a new broker-client relationship or when updating terms with existing clients. The letter includes essential elements such as the broker's regulatory status, scope of services, fee structures, risk disclosures, and compliance requirements. It demonstrates adherence to South African financial regulations while protecting both parties' interests through clear documentation of responsibilities and expectations.
