Evaluating an international introducing partnership
Commercial terms should come only after the jurisdictions, permissions and permitted activities have been clearly established.
1. Begin with jurisdiction, not commission
The first questions are where the partner is established, where prospects are resident and which entity would provide the underlying services. A model accepted in one market may be restricted in another.
2. Verify regulatory status
A prospective partner should disclose whether it is regulated, registered or exempt, and provide supporting information. Titles such as “introducer”, “affiliate” or “consultant” do not determine the legal classification of the activity.
3. Define the permitted perimeter
The agreement should specify what the partner may communicate and what it must not do. Without appropriate authorisation, the partner must not advise clients, receive or transmit orders, handle funds or credentials, or make representations beyond approved materials.
4. Review communications and incentives
Traffic sources, claims, risk warnings and remuneration should be reviewed before launch. Incentives must not encourage misleading communication, unsuitable acquisition or artificial client activity.
5. Monitor the relationship
Approval is not a one-off exercise. Communications, traffic quality, complaints and regulatory changes should be reviewed periodically, with the ability to suspend activity where required.
Raimondo Perfetto
Business development and international professional partnerships.