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Sub Broker Agreement
"I need a Sub Broker Agreement for my securities firm in Pakistan that includes specific provisions for online trading platforms and allows the sub-broker to service international clients, with the agreement starting from March 2025."
1. Parties: Identification of the Principal Broker and Sub-Broker with complete details including registration numbers and SECP licenses
2. Background: Context of the agreement, including the Principal Broker's authority and intention to appoint the Sub-Broker
3. Definitions: Definitions of key terms used throughout the agreement, including regulatory terms from SECP regulations
4. Appointment and Scope: Terms of Sub-Broker appointment and scope of authorized activities
5. Rights and Obligations of Sub-Broker: Detailed responsibilities, compliance requirements, and operational duties of the Sub-Broker
6. Rights and Obligations of Principal Broker: Principal Broker's responsibilities, oversight duties, and support commitments
7. Commission and Payment Terms: Fee structure, commission splits, payment schedules, and calculation methods
8. Compliance Requirements: Regulatory compliance obligations, including SECP regulations and AML requirements
9. Confidentiality: Confidentiality obligations and handling of client information
10. Term and Termination: Duration of agreement, renewal terms, and termination conditions
11. Indemnification: Mutual indemnification provisions and liability allocation
12. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law
13. General Provisions: Standard legal provisions including notices, amendments, and severability
1. Non-Compete: Restrictions on competitive activities, used when the broker wants to prevent the sub-broker from working with competitors
2. Training Requirements: Specific training obligations, included when the broker provides formal training programs
3. Insurance Requirements: Detailed insurance obligations, used when specific insurance coverage is required beyond regulatory minimums
4. Digital Trading Platforms: Terms for using electronic trading systems, included when online trading facilities are provided
5. Marketing and Branding: Guidelines for using the broker's brand, included when the sub-broker is authorized to use the broker's marketing materials
6. Performance Targets: Specific performance metrics and incentives, used when implementing performance-based compensation
7. Additional Services: Terms for extra services beyond basic sub-broking, included when offering research, advisory, or other services
1. Schedule A - Commission Structure: Detailed breakdown of commission rates, calculation methods, and payment terms
2. Schedule B - Compliance Procedures: Specific compliance protocols and procedures to be followed by the Sub-Broker
3. Schedule C - Required Documentation: List of regulatory and operational documents to be maintained
4. Schedule D - Reporting Requirements: Templates and timelines for required reports and notifications
5. Appendix 1 - KYC Requirements: Detailed Know Your Customer procedures and documentation requirements
6. Appendix 2 - Risk Management Protocols: Specific risk management procedures and limits
7. Appendix 3 - Technology Systems: Technical specifications and procedures for using trading platforms and systems
Authors
Financial Services
Securities Trading
Investment Banking
Wealth Management
Capital Markets
Financial Technology
Professional Services
Corporate Finance
Legal
Compliance
Risk Management
Operations
Finance
Trading
Business Development
Regulatory Affairs
Audit
Client Relations
Compliance Officer
Legal Counsel
Chief Executive Officer
Chief Operating Officer
Risk Manager
Securities Trader
Business Development Manager
Operations Manager
Financial Controller
Regulatory Affairs Director
Branch Manager
Trading Floor Manager
Account Manager
Compliance Analyst
Legal Manager
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