Here`s a look at the basic steps you need to take to create a simple and effective customer contract: If you run a business, there`s a chance you need a customer agreement. Of course, it can be difficult to know what`s in it. This article explains the most important concepts that all companies should include in their customer agreements. It is not advisable to impose an absolute restriction on the advisor who succumbs to other work during the duration of the engagement. The fact that the consultant has other clients will be a useful indicator of autonomy. On the other hand, it cannot be economically acceptable for the client to allow the consultant to work for his competitors or to resume other work that could jeopardize their ability to provide the services properly. Customer agreements need to be reviewed and possibly revised to match MiFID II. If the advice agreement imposes detailed and restrictive obligations on the advisor similar to those imposed or implied on a worker, this may lead to the realization that the counsellor is indeed a worker. The agreement may contain a statement confirming that the advisor is an independent contractor and certainly not an employee. This may be useful in highlighting the intentions of the parties in the framework of the agreement. But it is not necessarily the courts that will decide that the contractor is a worker or a worker. While most companies already meet these enhanced standards, companies must verify that the content of their agreements complies with MiFID II.
MiFID II also imposes somewhat more formal procedures to change client classifications – eligible counterparties seeking a higher level of protection must submit a written application and business clients who wish to opt for eligible counterparty status must receive a written warning from the company, after which they must confirm in writing their application and the fact that they are aware of the consequences of the protection they may lose. When a CSP is used, the provisions of its advisory agreement do not bind the individual advisor. Therefore, if the client wants the individual advisor to be related to him, he must ensure that the advisor enters either as a contracting party or makes the commitments separately, for example. B with a letter. For example, because each company must meet its financial obligations, the payment of services clause is essential. Be clear and tell the client that if you calculate through the project, you can also include a “Kill Fee” – a fee that the client must pay (usually 25 to 35% of the cost of the project) if he decides to terminate the project prematurely. If you work with clients, you are at least a little familiar with customer contracts. But just because you know what a customer contract is doesn`t mean you always use it. Or, if you use it, you establish a written agreement that will protect you and your business. The agreement should provide that the advisor maintains appropriate insurance. This may include: A customer agreement should indicate how one of the parties can terminate the agreement. It is a good idea to require full payment at the end, although it depends on the type of service the company has provided.
A company could also demand payment for all services provided until termination. These can be general or very concrete and detailed, in which case they can be defined in a separate timetable on the back of the agreement.