Author: Livia Tay, MY
Last Updated: April 15, 2025
This Chapter C outlines the rights the Company holds in relation to its relationship with Introducing Brokers (IBs), as well as its key responsibilities. It highlights the Company’s authority over client acceptance, data ownership, IB activity monitoring, and commission structures.
Rights and Obligations of the Company
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Client Acceptance Rights
The Company has the right to reject any prospective client referred by an IB without providing a reason. -
Ownership of Client Data
The Company fully owns all personal data and information related to the clients introduced by IBs. -
Commission Eligibility and Inactivity
The Company pays commission only to active IBs or Master IBs. An IB is considered inactive if they haven't generated commissions or referred new clients/IBs in the past 12 months. If inactive, the Company may:-
(i) Remove overriding commission structures and reset commission to a base level for direct IBs only;
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(ii) Terminate the partnership with the IB.
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Different IB Types and Commission Levels
The Company may offer various IB types with different commission rates.-
Criteria for upgrading or changing IB types are determined solely by the Company.
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The Company may refuse, downgrade, or change IB status at its full discretion.
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Website Oversight
The Company has the right to monitor the IB’s website or promotional platforms and can require changes.-
The IB must comply with any requested amendments.
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Company Commitments
The Company agrees to:-
(i) Act in good faith in line with this agreement;
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(ii) Keep records of client transactions for a reasonable period;
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(iii) Pay commissions to IBs for referred clients, except in the following cases:
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a) The IB and the referred client are the same person or entity;
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b) The IB has violated this agreement;
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c) A condition listed in Chapter D, Clause 7 applies (e.g., fraudulent activity, etc.).
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The Company retains the final authority in managing IB relationships, setting commission policies, and protecting its business integrity. By following these rules, both the Company and IBs can maintain a transparent and effective partnership.