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Broker Fee Contract Template for Australia

A comprehensive agreement governed by Australian law that establishes the terms and conditions for broker fee arrangements between a broker and their client. The document outlines the fee structure, payment terms, service obligations, and compliance requirements in accordance with Australian financial services regulations, including the Corporations Act 2001 and ASIC requirements. It incorporates necessary consumer protections, disclosure obligations, and specific provisions for various types of brokerage services while ensuring compliance with Australian privacy laws and anti-money laundering regulations.

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What is a Broker Fee Contract?

The Broker Fee Contract serves as a foundational document for establishing professional relationships between brokers and their clients in Australia. This agreement is essential for compliance with Australian financial services regulations and provides a clear framework for fee arrangements, service delivery, and mutual obligations. The contract is designed to meet requirements under the Corporations Act 2001, ASIC guidelines, and other relevant Australian legislation. It is particularly important for financial services providers, insurance brokers, and investment advisors who need to document their fee structures and service arrangements. The Broker Fee Contract typically includes detailed fee schedules, service level agreements, and compliance requirements, making it suitable for both retail and wholesale client relationships while ensuring appropriate consumer protections and regulatory compliance.

What sections should be included in a Broker Fee Contract?

1. Parties: Identification of the broker and client, including ABN/ACN and registered addresses

2. Background: Context of the agreement, including broker's licensing status and general nature of services

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of broker services to be provided

5. Broker's Obligations: Key responsibilities and duties of the broker, including regulatory compliance obligations

6. Client's Obligations: Client's responsibilities, including providing accurate information and documentation

7. Fees and Payment Terms: Detailed fee structure, payment schedule, and invoicing arrangements

8. Representations and Warranties: Key promises and statements made by both parties

9. Confidentiality: Obligations regarding confidential information handling

10. Privacy: Compliance with Privacy Act and handling of personal information

11. Term and Termination: Duration of agreement and circumstances for termination

12. Liability and Indemnity: Limitation of liability and indemnification provisions

13. General Provisions: Standard contract clauses including governing law, notices, and assignment

What sections are optional to include in a Broker Fee Contract?

1. Success Fee Provisions: Additional terms for performance-based fees, used when success fees are part of the compensation structure

2. Multi-currency Provisions: Specific terms for handling multiple currencies, used for international transactions

3. Sub-broker Arrangements: Terms governing the use of sub-brokers, included when sub-brokers may be engaged

4. Electronic Trading Platform: Terms specific to electronic trading platforms, included when platform access is provided

5. Research Services: Terms governing provision of research services, included when research is part of the service offering

6. Dispute Resolution: Detailed dispute resolution procedures, recommended for high-value contracts

What schedules should be included in a Broker Fee Contract?

1. Schedule 1 - Fee Schedule: Detailed breakdown of all fees, charges, and commission structures

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

3. Schedule 3 - Authorized Representatives: List of authorized personnel who can act on behalf of each party

4. Appendix A - Compliance Requirements: Detailed regulatory compliance obligations and procedures

5. Appendix B - Required Documentation: List of required documentation and forms

6. Appendix C - Risk Disclosure Statement: Standard risk warnings and disclosures required by regulations

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok˰ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Australia

Publisher

tiktok˰

Sector

Sales

Cost

Free to use

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