When Is A Client Agreement Required

Whatever your industry, you should prioritize a clear and detailed project in each customer agreement. You will provide us, upon request, with the amounts we need at our discretion to protect us from losses or losses on current, future or proposed transactions under this Agreement. Different margin requirements may apply to different accounts and/or traded assets. We may ask you to supplement this margin at any time if your account shows a budget balance or an increase in your margin request. You pay or transfer the margin within the minimum time frame we set (which may be on the same business day). The FAQs specify that an intermediary who conducts corporate finance activities (for example.B. Advice on new equity offerings or offers to buy, merger and acquisition advisory, corporate restructuring, financing, acquisition and sponsorship activities that fall within the Board`s definition of corporate financing in Part 2 of Schedule 5 of the Securities and Futures Regulation (SFO) should normally rely on paragraph 6.4 of the Code to justify the use of its discretion and without including the adequacy clause in the agreement. In essence, it is a remarkable tax that customers can pay to get out of the contract if no conditions are breached. By calculating these fees, you are always paid for your time, while leaving the right decision for your client. The new clause must be included in customer agreements in accordance with the new paragraph 6.2 (i) of the code. The definition of “financial product” was inserted at the request of the respondents for clarification of the concept of financial product. The CFS recommends that intermediaries either include a footnote in the new clause in their client agreements or reflect the definition of their agreements in the Definitions section. The “non-exception” component of the new clause is intended to prevent the purpose of the new clause from being rejected by exclusions of liability or other clauses contained in the client agreement or elsewhere.

The CFS found that, in the past, some intermediaries were able to circumvent liability based on extensive disclaimers in their client contracts.