The Broker Agreement Commission is a critical document used in Singapore to formalize the commercial relationship between principals and their brokers. It establishes clear parameters for commission-based compensation, ensuring compliance with Singapore's regulatory framework, including MAS guidelines and industry-specific regulations. This agreement is particularly important in regulated industries where commission structures must meet specific legal requirements and transparency standards. The document typically includes detailed commission calculations, payment terms, performance metrics, and compliance obligations.
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1. Parties: Identification of broker and principal, including registration details and licensing information
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Appointment and Scope: Terms of broker appointment and authorized activities
5. Commission Structure: Detailed breakdown of commission rates and payment terms
6. Obligations of the Broker: Duties, responsibilities and compliance requirements
7. Term and Termination: Duration of agreement and termination provisions
8. Confidentiality: Protection of confidential information and trade secrets
1. Non-Competition: Restrictions on competitive activities - used when protecting market position is crucial
2. Insurance Requirements: Professional indemnity and other insurance obligations - used when dealing with high-value transactions or regulated activities
3. Marketing Rights: Use of principal's branding and marketing materials - used when broker will be actively marketing principal's products
4. Territory Rights: Geographical limitations of broker authority - used when broker's activities are territory-specific
1. Commission Rate Card: Detailed breakdown of commission structures and calculations
2. Service Level Agreement: Performance metrics and service standards
3. Compliance Requirements: Regulatory requirements and compliance procedures
4. Approved Marketing Materials: Pre-approved materials and guidelines for marketing
5. Required Documentation: List of documents required for transactions and compliance
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