An Appointed Representative Agreement (ARA) is a legally binding contract between a principal firm and an appointed representative (AR). This agreement outlines the terms and conditions under which the AR is authorized to conduct regulated activities on behalf of the principal firm. A well-crafted ARA is crucial for ensuring compliance with regulatory requirements and protecting the interests of both parties.
Key Elements of an Appointed Representative Agreement Template
A comprehensive ARA should include the following key elements:
Representative Agreement Template in Google Docs, Word, Pages
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1. Parties to the Agreement
Principal Firm: Clearly identify the principal firm, including its legal name, registered address, and regulatory status.
Appointed Representative: Clearly identify the appointed representative, including their legal name, registered address, and any relevant qualifications or certifications.
2. Scope of Appointment
Permitted Activities: Specify the exact regulated activities that the AR is authorized to undertake on behalf of the principal firm. This may include activities such as advising on investments, dealing in investments, arranging deals in investments, or administering investments.
Geographical Scope: Define the geographical area within which the AR is permitted to operate. This may be limited to a specific country, region, or jurisdiction.
3. Duties and Responsibilities
AR’s Duties: Outline the specific duties and responsibilities of the AR, such as:
Complying with all relevant laws, regulations, and codes of conduct.
Acting honestly, fairly, and professionally in all dealings with clients.
Disclosing all material information to clients.
Avoiding conflicts of interest.
Keeping accurate records.
Cooperating with the principal firm in regulatory investigations and audits.
Principal Firm’s Duties: Outline the specific duties and responsibilities of the principal firm, such as:
Providing adequate training and support to the AR.
Monitoring the AR’s activities to ensure compliance with regulatory requirements.
Taking appropriate disciplinary action in the event of misconduct.
Indemnifying the AR for losses arising from the AR’s authorized activities, subject to certain conditions.
4. Remuneration
Fee Structure: Clearly outline the fee structure for the AR’s services. This may involve a fixed fee, a percentage fee, or a combination of both.
Payment Terms: Specify the payment terms, including the frequency of payments and any applicable taxes or deductions.
5. Term and Termination
Term of Agreement: Specify the duration of the agreement, whether it is a fixed term or indefinite.
Termination Events: Outline the events that may trigger the termination of the agreement, such as:
Breach of the agreement by either party.
Insolvency or bankruptcy of either party.
Regulatory intervention.
Termination Procedures: Specify the procedures for terminating the agreement, including any required notice periods.
6. Dispute Resolution
Dispute Resolution Mechanism: Outline the mechanism for resolving disputes between the parties, such as mediation, arbitration, or litigation.
7. Governing Law and Jurisdiction
Governing Law: Specify the law that governs the agreement.
Jurisdiction: Specify the jurisdiction in which any disputes arising from the agreement will be resolved.
8. Confidentiality
Confidentiality Obligations: Outline the confidentiality obligations of both parties, including the protection of confidential information.
9. Insurance
Insurance Requirements: Specify any insurance requirements for the AR, such as professional indemnity insurance.
10. Notices
Notice Procedures: Specify the procedures for giving notices under the agreement, including the preferred method of delivery.
Designing a Professional Appointed Representative Agreement Template
To create a professional and effective ARA template, consider the following design elements:
Clear and Concise Language: Use clear and concise language to avoid ambiguity and legal jargon.
Professional Formatting: Use a professional font and layout to enhance readability.
Consistent Formatting: Use consistent formatting throughout the document, including headings, font sizes, and spacing.
Clear Headings and Subheadings: Use clear and concise headings and subheadings to organize the content.
Bullet Points: Use bullet points to highlight key points and improve readability.
White Space: Use white space effectively to improve the overall appearance of the document.
By carefully considering these elements, you can create a professional and effective ARA template that protects the interests of both the principal firm and the appointed representative.
