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Non Exclusive Broker Agreement for South Africa

Non Exclusive Broker Agreement Template for South Africa

This Non-Exclusive Broker Agreement is a comprehensive legal document governed by South African law, particularly compliant with the Financial Advisory and Intermediary Services (FAIS) Act and related regulations. It establishes a non-exclusive commercial relationship between a principal and a broker, defining the terms under which the broker may represent the principal's interests while maintaining the principal's right to engage other brokers. The agreement includes detailed provisions for compensation, compliance requirements, service standards, and risk allocation, all structured within the South African legal framework.

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Non Exclusive Broker Agreement

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What is a Non Exclusive Broker Agreement?

The Non-Exclusive Broker Agreement is essential for businesses in South Africa seeking to establish formal relationships with brokers while maintaining flexibility in their distribution or representation strategies. This document is particularly relevant when a company wants to engage professional intermediaries without granting exclusive rights, common in financial services, real estate, and trading sectors. The agreement ensures compliance with South African regulations, particularly the FAIS Act for financial services, and includes comprehensive terms covering broker obligations, compensation structures, and compliance requirements. It provides necessary legal protection while allowing the principal to maintain multiple broker relationships, making it suitable for businesses looking to expand their market reach through professional intermediaries.

What sections should be included in a Non Exclusive Broker Agreement?

1. Parties: Identification of the Principal and the Broker, including registration numbers and addresses

2. Background: Context of the agreement and brief description of the parties' business activities

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

4. Appointment and Scope: Terms of broker's appointment and detailed scope of authorized services

5. Non-Exclusivity: Explicit statement of non-exclusive nature and right to appoint other brokers

6. Broker's Obligations: Detailed responsibilities, including compliance with laws, reporting requirements, and service standards

7. Principal's Obligations: Principal's duties, including providing necessary information and support

8. Compensation: Commission structure, payment terms, and calculation methods

9. Compliance Requirements: Regulatory compliance obligations, including FAIS Act requirements

10. Representations and Warranties: Standard representations regarding authority, capacity, and regulatory compliance

11. Duration and Termination: Term of agreement and termination provisions

12. Confidentiality: Protection of confidential information and trade secrets

13. General Provisions: Standard clauses including notices, governing law, and dispute resolution

What sections are optional to include in a Non Exclusive Broker Agreement?

1. Transaction Reporting: Detailed reporting requirements for specific types of transactions - include when dealing with regulated financial products

2. Client Money Handling: Procedures for handling client funds - include when broker will receive client money

3. Insurance Requirements: Specific insurance coverage requirements - include for high-value transactions or regulated sectors

4. Marketing Rights: Terms for using principal's brand and marketing materials - include when broker will conduct marketing activities

5. Sub-Brokers: Terms for appointment of sub-brokers - include when sub-brokers may be needed

6. International Transactions: Special provisions for cross-border activities - include for international business

7. Data Protection: Detailed POPIA compliance measures - include when extensive personal data processing is involved

What schedules should be included in a Non Exclusive Broker Agreement?

1. Schedule 1: Commission Structure: Detailed breakdown of commission rates and calculation methods for different types of transactions

2. Schedule 2: Approved Products/Services: List of products or services the broker is authorized to promote or sell

3. Schedule 3: Compliance Procedures: Detailed compliance procedures and checklists

4. Schedule 4: Reporting Templates: Standard forms and templates for regular reporting

5. Appendix A: Required Licenses: Copies of relevant licenses and certifications

6. Appendix B: Territory Definition: Detailed description of geographical territory if applicable

7. Appendix C: Service Level Standards: Specific performance metrics and service standards

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

South Africa

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions





































Clauses

































Relevant Industries

Financial Services

Insurance

Real Estate

Business Consulting

Commodities Trading

Investment Services

Commercial Property

Securities Trading

Import/Export

Business Brokerage

Relevant Teams

Legal

Compliance

Business Development

Sales

Operations

Risk Management

Commercial

Channel Management

Partner Relations

Contract Administration

Relevant Roles

Chief Executive Officer

Commercial Director

Business Development Manager

Compliance Officer

Legal Counsel

Financial Director

Sales Director

Broker Relations Manager

Channel Manager

Risk Manager

Operations Director

Contract Manager

Partnership Manager

Industries







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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