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The Introducing Broker Agreement is essential for financial institutions operating in Saudi Arabia who wish to expand their client base through third-party introducers. This document is specifically designed to comply with Saudi Arabian regulations, including CMA requirements and Islamic finance principles. It is typically used when a licensed financial institution wants to formalize a relationship with an introducing broker who will refer potential clients for securities trading, investment services, or other financial products. The agreement must address specific regulatory requirements including licensing, AML procedures, and Shariah compliance. It defines the scope of permitted activities, commission structures, and compliance obligations while protecting both parties' interests under Saudi Arabian law.

1. Parties: Identification of the introducing broker and the principal broker/financial institution

2. Background: Recitals explaining the context of the agreement, including licensing status of both parties

3. Definitions and Interpretation: Key terms used in the agreement, including regulatory-specific terminology

4. Appointment and Scope: Terms of appointment and detailed scope of introducing broker services

5. Regulatory Compliance: Obligations regarding CMA regulations, licensing requirements, and other applicable laws

6. Shariah Compliance: Confirmation of Shariah compliance and related obligations

7. Duties of the Introducing Broker: Detailed responsibilities including client introduction, documentation, and ongoing obligations

8. Duties of the Principal: Responsibilities of the principal broker/financial institution

9. Fees and Payment Terms: Commission structure, payment terms, and calculation methods

10. Representations and Warranties: Standard and regulatory-specific representations from both parties

11. Compliance with AML Requirements: Anti-money laundering obligations and procedures

12. Confidentiality: Confidentiality obligations and data protection requirements

13. Term and Termination: Duration of agreement and termination provisions

14. Indemnification and Liability: Risk allocation between parties and limitation of liability provisions

15. General Provisions: Standard boilerplate clauses including notices, amendments, governing law