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Broker Client Agreement Template for Singapore

A comprehensive legal agreement governed by Singapore law that establishes the relationship between a licensed broker and their client. The agreement complies with MAS regulations and the Securities and Futures Act, outlining the terms and conditions for trading services, risk disclosures, client obligations, and broker responsibilities. It includes specific provisions for different client classifications and various trading services offered under Singapore's regulatory framework.

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What is a Broker Client Agreement?

The Broker Client Agreement is a fundamental document required under Singapore's regulatory framework for establishing a formal relationship between licensed brokers and their clients. This agreement is essential for compliance with the Securities and Futures Act and MAS regulations, providing clear terms for trading services, risk management, and client protection. It addresses various aspects including account operation, trading authorizations, fee structures, and regulatory requirements specific to Singapore's financial markets.

What sections should be included in a Broker Client Agreement?

1. Parties: Identification of the broker and client, including registration details and addresses

2. Background: Context of the agreement and regulatory framework under which services are provided

3. Definitions: Key terms used throughout the agreement, including regulatory definitions

4. Services: Scope of brokerage services to be provided

5. Client Classification: Classification of client (retail/accredited/institutional investor)

6. Trading Authorization: Terms under which the broker may execute trades

7. Fees and Commissions: Pricing structure and payment terms

8. Risk Disclosure: Mandatory risk warnings as per MAS requirements

9. Client Obligations: Client responsibilities including KYC and AML requirements

10. Termination: Conditions for ending the agreement

What sections are optional to include in a Broker Client Agreement?

1. Online Trading Facilities: Terms and conditions for electronic trading platforms when offering online trading services

2. Margin Trading: Terms and conditions for margin financing when offering margin trading facilities

3. Foreign Securities Trading: Additional terms and conditions for international trading when offering foreign market access

4. Discretionary Trading: Terms and conditions for managed accounts when offering discretionary account management

What schedules should be included in a Broker Client Agreement?

1. Risk Disclosure Statement: Detailed risk disclosures as required by MAS

2. Fee Schedule: Detailed breakdown of all fees and charges

3. Trading Rules: Specific trading rules and procedures

4. Personal Data Protection Policy: Details of data handling and privacy practices

5. Account Opening Forms: Required documentation for account setup

6. Authorized Persons List: List of persons authorized to trade on behalf of client

Authors

Alex Denne

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

Jurisdiction

Singapore

Publisher

Ƶ

Document Type

Broker Agreement

Cost

Free to use

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