Author: Livia Tay, MY
Last Updated: April 15, 2025
This Chapter B outlines the rights granted to Introducing Brokers (IBs), their key responsibilities, and the boundaries within which they must operate. It also details what IBs are not allowed to do, as well as important compliance and ethical expectations.
Rights of the Introducing Broker
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Application Process
To become an IB, applicants must complete the relevant application process. The Company has full discretion to approve or reject applications or request additional information. -
Non-Exclusive Referral Rights
Once approved, IBs receive a non-exclusive, non-transferable right to refer prospective clients to the Company’s site (or its affiliated sites). The Company provides a unique IB referral link.
Obligations of the Introducing Broker
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Compliance with Laws
IBs must follow the laws of their own country as well as those under the Company’s regulatory jurisdiction. -
Professional and Ethical Conduct
IBs must:-
(i) Act in good faith and avoid making false or misleading claims about the Company or its affiliates.
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(ii) Cooperate with the Company in handling client complaints.
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(iii) Provide documentation or evidence about their dealings with clients when requested.
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(iv) Avoid doing anything that could cause the Company to break its own agreements or the law.
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(v) Promptly provide any additional information the Company requires.
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(vi) Follow high ethical and professional standards, avoiding any action that could damage the Company’s reputation.
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(vii) Keep the Company informed about all services provided.
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(viii) Notify the Company immediately if there’s any breach of legal or regulatory rules.
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(ix) Notify the Company if they are involved in any legal actions or receive any disciplinary orders that may negatively affect the Company.
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(x) Indemnify (i.e. cover the losses of) the Company if any of their actions lead to legal or regulatory violations.
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Prohibited Activities
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IBs are not allowed to:
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(i) Contact or interact with clients unless the Company gives written permission.
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(ii) Accept money or trade on behalf of clients.
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(iii) Modify any Company or affiliate documents or marketing materials.
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(iv) Make unauthorized claims or guarantees about the Company.
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(v) Enter into any contracts or financial obligations on behalf of the Company or its affiliates.
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Additional Notes
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Responsibility for Violations
Any costs or penalties resulting from violations of this agreement must be covered by the IB. The Company is only responsible for commission payments outlined in the commission schedule. -
Client Reassignment
If a client requests to be reassigned from one IB to another, the Company has full discretion to make the change and stop commission payments to the previous IB.
This chapter defines a balanced partnership: IBs are given the tools and rights to refer clients and earn commissions, but they are also expected to act with integrity, professionalism, and full compliance with the law. These rules are in place to protect both the Company and the IB's long-term success.