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Commercial Loan Broker Agreement for the United Kingdom

Commercial Loan Broker Agreement Template for England and Wales

A Commercial Loan Broker Agreement is a legally binding contract governed by English and Welsh law that establishes the terms and conditions under which a broker will assist a client in securing commercial financing. The agreement outlines the broker's services, compensation structure, obligations of both parties, and compliance requirements under UK financial regulations. It includes provisions for confidentiality, data protection, and regulatory compliance under the Financial Conduct Authority (FCA) framework.

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Commercial Loan Broker Agreement

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What is a Commercial Loan Broker Agreement?

The Commercial Loan Broker Agreement serves as the foundational document for establishing a professional relationship between a loan broker and a business client seeking financing solutions. This agreement, governed by English and Welsh law, is essential when businesses require expert assistance in securing commercial loans, defining the scope of services, compensation structure, and respective obligations. The document ensures compliance with UK financial regulations, including FCA requirements, while protecting both parties' interests through clear terms and conditions.

What sections should be included in a Commercial Loan Broker Agreement?

1. Parties: Identification of the broker and the client

2. Background: Context of the agreement and broker's role

3. Definitions: Key terms used throughout the agreement including regulated activities terminology

4. Scope of Services: Detailed description of broker's services and extent of authority

5. Fees and Commission: Payment terms, commission structure, and timing of payments

6. Obligations of the Broker: Broker's duties, regulatory compliance requirements, and service standards

7. Client's Obligations: Client's responsibilities including information provision and cooperation

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

9. Confidentiality: Protection of confidential information and data protection compliance

10. Representations and Warranties: Key assurances from both parties including regulatory status

11. Liability and Indemnification: Limitations of liability and indemnification provisions

12. General Provisions: Standard boilerplate clauses including governing law and jurisdiction

What sections are optional to include in a Commercial Loan Broker Agreement?

1. Exclusivity: Terms regarding exclusive rights of the broker to represent the client

2. Success Fee Structure: Detailed terms for performance-based compensation and success fees

3. Sub-broking Arrangements: Terms governing the involvement of other brokers or intermediaries

4. Non-Circumvention: Provisions preventing direct dealings between client and introduced lenders

5. Anti-Money Laundering Compliance: Specific AML obligations and procedures

What schedules should be included in a Commercial Loan Broker Agreement?

1. Schedule 1 - Services: Detailed breakdown of broker services and deliverables

2. Schedule 2 - Fee Schedule: Comprehensive fee structure, commission rates, and payment terms

3. Schedule 3 - Required Information: List of documentation and information required from the client

4. Schedule 4 - Service Level Agreement: Specific performance metrics and service standards

5. Schedule 5 - Compliance Requirements: Regulatory compliance procedures and requirements

Authors

Alex Denne

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

Jurisdiction

England and Wales

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions




























Clauses



























Industries

Financial Services and Markets Act 2000 (FSMA): Primary legislation establishing the regulatory framework for financial services in the UK, determining FCA authorization requirements and setting out regulations for regulated activities

FSMA (Regulated Activities) Order 2001: Defines credit broking activities and specifies which activities require FCA authorization in the context of loan brokerage

Consumer Credit Act 1974: Provides protection for sole traders and requirements for credit brokerage, relevant even in commercial lending contexts

FCA Handbook: Contains specific sourcebooks including CONC (Consumer Credit), PRIN (Principles for Businesses), and systems and controls requirements for brokers

Data Protection Act 2018 and UK GDPR: Governs the handling of personal and business data, including privacy requirements and data processing obligations

Money Laundering Regulations 2017: Sets out due diligence requirements, record keeping obligations, and reporting requirements for financial service providers

Contracts (Rights of Third Parties) Act 1999: Governs third-party rights in contracts and related exclusion clauses

The Bribery Act 2010: Establishes anti-bribery provisions and corporate hospitality considerations for business relationships

Financial Services (Distance Marketing) Regulations 2004: Regulates the provision of financial services provided remotely or through digital channels

Common Law Principles: Encompasses fundamental legal principles including contract formation, misrepresentation, breach of contract remedies, and fiduciary duties

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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