NAME OF INTRODUCER:
Reasons for wanting to become an Introducer to
[add name of AR]:
Which [add name of AR] adviser will the
Introducer firm introduce to?
Number of cases/clients that the Introducer
expects to introduce to [add name of AR] per
Total number of staff at Introducer firm:
Total number of offices:
How are clients vetted by the Introducer firm
before being introduced to [add name of AR]?
Does the Introducer firm introduce clients to
other financial advisers?
Does the Introducer’s company provide regular
introducer training to staff?
Do you feel you would benefit from Introducer
Training? If so, why?
We pay commissions to introducers by BACS
rather than by cheque. Please supply your bank Account number……………………………
details so that we can send these commission
payments to you. Sort code……………………………………
MONEY WISE IFA LIMITED INTRODUCER’S AGREEMENT
THIS AGREEMENT is made the day of 2007
Money WISE IFA Limited of 7 Chapel Row, Queen Square, Bath BA1 1HN
[add name, address and postcode of AR]
(“the Appointed Representative”)
Introducer name, Occupation, of Company name, introducer address and postcode (“the
ACCORDINGLY THE PARTIES HERETO HAVE AGREED as follows:
‘Introducer Appointed Representative’ means The Introducer
‘Principal’ or ‘Firm’ means The Company
‘Contract’ means this Agreement
‘Claw Back’ means the reclaiming of unearned indemnified commission by the insurance or
investment company resulting from the cancellation of a particular life, pension or investment
contract by the client.
‘Industry Regulation’ means the Financial Services and Markets Act (2000), the Companies Act
1989, the FSA Rules and Guidelines, the Financial Services (Client Money) Regulations 1991 as
amended, the SIB Statements of Principle, the Financial Services (Cancellation) Rules 1989 and all
other relevant laws, by-laws, regulations, codes, statements, and requirements of any government or
other competent regulatory authority or body relating to the Company and the conduct of the
Business in force from time to time.
‘FSA’ means the Financial Services Authority.
‘The Act’ means the Financial Services and Markets Act (2000).
‘Limited advice’ means that if the advice is given on limited information, either because the client
did not want to disclose certain information, or has asked for advice on a specific area (e.g.
investment), this should be recorded with the client’s information and, ideally, signed by the client.
‘Execution only’ means that a transaction is only execution only if the client knows exactly which
product he/she wants and has given the adviser full instructions. If, for example, the client wants a
maxi ISA, investing in stocks & shares and has £5,000 to invest - but he asks which product
provider is suitable - it is not execution only.
1. The Introducer agrees from time to time to effect the introduction of clients to the Appointed
Representatives or its company representatives.
2. Following an introduction to the Appointed Representative, the Introducer will refrain from
giving the client any investment advice as defined in the Act. From the time of the
introduction all such advice is to be given by the Appointed Representative.
3. The Introducer will not be responsible to the client for any investment advice given to the
client by the Appointed Representative.
4. Subject to the full application of the principles of ‘best advice’, the business may be placed
with any product company including any life assurance company, investment management
group, or Mortgage Lender.
5. The Appointed Representative agrees to pay to the Introducer: …..…..% of the gross initial
commission received by the Appointed Representative when the Introducer’s activities result
in the introduction of new business from clients who at the time of the introduction were not
clients of the Appointed Representative or The Company.
6. In the event of a claw back of commission arising, the relevant portion of the claw back will
be deducted from the Introducer’s commission account at source. In the event of the
termination of this agreement, for whatever reason and whenever, the Introducer agrees to
remain liable to repay to the Appointed Representative the relevant portion of the commission
claw back suffered by the Appointed Representative during and after the termination of this
7. All commission payments are subject to the payment of the premium or making of the
investment to which they refer.
8. The commission paid to the introducer will be regarded by the Appointed Representative as
covering all services performed by the Introducer.
9. Should any amount be paid by the Appointed Representative to the Introducer be liable to
value added tax (VAT) the amount actually received by the Introducer from the Appointed
Representative shall be deemed to be inclusive of VAT.
10. This agreement may be terminated by either party, for whatsoever reason, by giving one
month’s notice in writing.
11. Please refer to the attached Appendix.
For and on behalf of the Introducer
For and on behalf of the Appointed Representative
PRINT NAME OF DIRECTOR:
For and on behalf of The Company
APPENDIX TO MONEY WISE IFA LIMITED INTRODUCER’S AGREEMENT
What is an introducer appointed representative?
An introducer is, in outline, a person or company, other than an appointed representative, who is appointed by a firm to
effect introductions between customers and the firm but not to give advice on investments, will not, for this reason
alone, need to be an approved person although certain obligations will apply.
An introducer appointed representative is an appointed representative appointed by a firm whose scope of appointment
must be limited to:
Effecting introductions between customers and the firm or other members of the firm’s marketing group; and
Distributing non-real-time financial promotions approved by the firm or other members of the firm’s marketing
group or the producer of an adopted packaged product.
The permitted scope of appointment of an introducer appointed representative does not include advising on investments
or other activity that might reasonably lead a customer to believe that he had received advice on investments or that the
Introducer appointed representative is permitted to give advice on investments.
To become an introducer appointed representative, a person must meet the conditions in the Act to become an appointed
The introducer appointed representative cannot be an appointed representative for a member of another marketing
If an introducer appointed representative is an individual in business on his own, then he will also be an introducer.
Introducers, representatives and financial advisers: what do these terms mean and what is the relationship with
an appointed representative?
An introducer is an individual appointed by a provider firm or by an appointed representative of such a firm to carry out,
in the course of designated investment business, either or both of the following activities:
Distributing non-real-time financial promotions
An introducer is not an exempt person under the Act (unless he is also an introducer appointed representative) and hence
cannot benefit from the exemption to carry on regulated activities in his own right. As a result, an introducer that is not
an introducer appointed representative works in the name of his firm or the firm’s appointed representative but he does
not fall within the scope of the approved persons regime as he does not, as such, perform a controlled function.
An introducer must satisfy the following conditions: -
An introducer is not be an authorised person, that is, the introducer must not have permission under the Act to
carry on any regulated activity in his own right
The introducer has entered into this contract with an authorised person, referred to in the Act as the ‘principal’,
which permits or requires the introducer to carry on business of a description prescribed in the Appointed
Representatives Regulations and also complies with any requirements that may be prescribed in the Appointed
Representatives Regulations and
The principal accepts responsibility for the activities of the Introducer in carrying on the whole, or part, of the
business specified in the contract.
The appointed representative is an exempt person in relation to any regulated activity comprised in the carrying on of
the business for which his principal has accepted responsibility.
Business for which an appointed representative is exempt: -
The Appointed Representative Regulations are made by the Treasury. These regulations describe, among other things,
the business for which an appointed representative may be exempt, which is business, which comprises any of:
a) Arranging deals in investments or making arrangements with a view to transactions in investments where the
arrangements are for or with a view to transactions relating to securities or contractually based investments;
b) Advising on investments
c) Arranging safeguarding and administration of assets;
And agreeing to carry on a regulated activity where the regulated activity is one of those in a) and b) above.
This contract, which does not prohibit the appointed representative from representing other counterparties, contains a
provision enabling the firm to:
Prohibit the appointed representative from representing other counterparties or
Impose restrictions as to the other counterparties, which the appointed representative may represent, or as to the
types of investment in relation to which the appointed representative may represent other counterparties.
An appointed representative is treated as representing other counterparties if it:
Makes arrangements for persons to enter into investment transactions with other counterparties; or
Arranges the safeguarding and administration of assets by other counter parties; or
Gives advice on the merits of entering into investment transactions with other counter parties where an
‘investment transaction’ means a transaction to buy, sell, subscribe for or underwrite a security or a
contractually based investment.
Contract terms for an introducer appointed representative
This contract prohibits the introducer appointed representative from (in relation to a designated investment or designated
Effecting an introduction between a customer and a person other than the firm or another member of the firm’s
marketing group; and
Distributing non-real-time financial promotions approved by a person other than the firm or another member of
the firm’s marketing group or the producer of an adopted packaged product;
and carrying on any regulated activity on behalf of any person other than the firm or another member of the firm’s
Additional obligations for introducer appointed representatives
The introducer appointed representative must not, in relation to a designated investment or designated investment
Effect an introduction between a customer and a person other than the firm or another member of the firm’s
marketing group; or
Distribute non-real-time financial promotions approved by a person other than the firm or another member of
the firm’s marketing group or the producer of an adopted packaged product; and
Does not carry on any regulated activity on behalf of any person other than the firm or another member of the firm’s
The firm will give written notice to the FSA as soon as it has reasonable grounds to believe that any of the FSA rules /
conditions are not satisfied, or are likely not to be satisfied, in relation to any of its appointed representatives.
In such notification to FSA the firm will state either:
The steps it proposes to take to rectify the matter; or
The date of termination of its contract with the appointed representative.
Termination of a relationship with an appointed representative
Notification of termination or prohibited amendment of the contract
If either the firm or the appointed representative notifies the other that it proposes to terminate a contract or to amend it
so that it no longer meets the requirements prescribed in the Introducer appointed representative regulations, the firm
Give written notice to the FSA no more than ten business days after the date of the decision to terminate or so
amend the contract or, if later, as soon as it becomes aware that the contract is to be or has been terminated or
Include in the written notice the reason for the termination or amendment, if the termination or amendment is
due to misconduct or the appointed representative is resigning while under investigation by the firm, the FSA,
another regulator, a clearing-house, an exchange, a designated professional body, or a government body or
if relevant, include in the written notice details of action taken by the firm and, if applicable, its outcome; this
agreement may be terminated by either party at any time by one week’s notice in writing to the other party.
Termination will take effect on receipt of such notice by the other party.
Suitability of appointment of an introducer appointed representative
Before a firm appoints an Introducer, it will take reasonable care to ensure that the Introducer is suitable to act for the
firm in that capacity (having regard, in particular, to other persons connected with the person who will be, or who are,
directly responsible for its activities).
The firm will verify the identity of a prospective introducer appointed representative and relevant persons.
Was the Introducer’s previous appointment as an introducer appointed representative or representative terminated? If so,
what were the reasons for the termination and the extent to which those reasons reflect on the person concerned?
Table of information to be disclosed by the Introducer in written communications.
Any written communication, including stationery, business cards or other business documentation used the introducer
The name, business address and telephone number of the firm or of the branch or office of the firm from which
the communication originates;
The name and status or relationship with the firm, of the individual from whom the communication originates;
A statement that the firm is regulated by or authorised by the Financial Services Authority;
If the communication is by or relates to an introducer, a statement of the introducer’s capacity, i.e. the
Introducer is an Introducer Appointed Representative of Money Wise IFA Limited, which is Authorised and
regulated by the Financial Services Authority.