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Agency trade meaning

What does Agency trade mean?
An agency trade is where a stockbroker or investment bank executes a client’s order (for example, for a pension fund) as agent, rather than taking the other side as principal. The firm does not assume market risk; title passes directly between the client and the market counterparty, and the firm is paid by commission or agreed fees. In UK and Irish practice, this is a descriptive market term (not a statutory definition) aligned with MiFID II’s “execution of orders on behalf of clients”, implemented in the UK through the FCA Handbook (COBS) and in Ireland through Central Bank rules. Key legal features include best execution and client order handling obligations, conflict management (including order aggregation and allocation), and post-trade reporting and confirmation requirements, which must state whether the firm acted as agent or principal. Agency trading is contrasted with a principal trade (dealing on own account) and with matched principal trading (where the firm briefly interposes itself as counterparty). The choice of agency or principal capacity affects pricing, commission disclosure, conflicts analysis and governance for institutional clients, including pension schemes. Usage and legal effects are broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland.
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View the related Checklists about Agency trade

CHECKLISTS
Acas early conciliation for employment tribunal claims in Great Britain: checklist of relevant proceedings and statutory time-limit extensions

The early conciliation (EC) requirement The early conciliation (EC) requirement—sometimes referred to as mandatory Acas early conciliation—obliges a would‑be claimant to give Acas specified details, including certain information, before issuing an employment tribunal claim, as provided by section 18A(1) of the Employment Tribunals Act 1996 (ETA 1996). For more detail, see Practice Note: The early conciliation requirement. This Checklist explains which claims constitute ‘relevant proceedings’, and identifies those that are caught by the early conciliation requirement either because of: ETA 1996, s 18(1A), or a specific provision in the applicable legislation For guidance on relevant proceedings, see Practice Note: The early conciliation requirement—Relevant proceedings. Where a prospective claimant satisfies the early conciliation requirement, there is, in almost all cases, a statutory extension to the usual deadline within which a claim must be presented to an employment tribunal. This Checklist also indicates where the operative extension provisions on time limits are located, and highlights categories of proceedings to which those extension provisions...

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CHECKLISTS
Vertical Agreements under the Competition Act 1998 (UK VABEO 2022): Drafting and Compliance Checklist—hardcore/excluded restrictions, dual distribution, parity and online sales

This Checklist summarises the key considerations when preparing new vertical agreements, or revising existing ones, to determine whether they benefit from the block exemption in The Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022, SI 2022/516 (UK VABEO). It is not a full exposition of UK VABEO, but a tool for commercial lawyers to check that a vertical arrangement falls within UK VABEO (together with any accompanying guidance). For more detail, refer to: CMA Guidance: UK VABEO. A flowchart appears at the end of this Checklist, outlining the principal steps for assessing whether an agreement is covered by UK VABEO. Introduction to UK VABEO Agreements that affect trade and limit competition in the UK may fall within the prohibition on anti-competitive agreements contained in Chapter I of the Competition Act 1998 (CA 1998)...

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CHECKLISTS
UK motor vehicle aftermarket vertical agreements: drafting and compliance checklist under the MVBEO and VABEO

This Checklist highlights the core considerations under The Competition Act 1998 (Motor Vehicle Agreements Block Exemption) Order 2023 (No 2) (MVBEO) when preparing new vertical agreements, or revising existing ones, concerning motor vehicle aftermarkets for the delivery of repair and maintenance services, or the supply of motor vehicle aftermarket goods (together, the motor vehicle aftermarket). This Checklist is not a full manual to the MVBEO, but is intended for use where a commercial lawyer seeks to verify that a vertical agreement benefits from the MVBEO (and any guidance issued under it). A flowchart appears at the end of this Checklist, outlining the principal steps to follow when determining whether an agreement is covered by the MVBEO. It focuses on vertical arrangements for repair, maintenance, and the distribution of aftermarket goods within the motor vehicle aftermarket specifically. Introduction to MVBEO Any arrangement that affects trade and limits competition in the UK may fall within the Chapter I prohibition on anti-competitive agreements in the Competition Act 1998...

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NEWS
UK commercial law weekly: ASA rulings; CMA consultations (DMCCA, TTBER) and loyalty pricing review; key contract cases; Ofcom Online Safety guidance; procurement call-offs; EU CSDDD FAQ (1 August 2024)

In this issue: Advertising, marketing and sponsorship Agency and distribution Consumer protection Contracts E-commerce International Public procurement Supplier management LexTalk®Commercial: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary Trackers Advertising, marketing and sponsorship ASA rulings—31 July 2024 The Advertising Standards Authority (ASA) has flagged the Person(s) unknown trading as Mendio Life for inquiry after insights from its Active Ad Monitoring system. A Meta promotion by Mendio Life for an acupressure clip asserted medical effects for a device lacking the necessary conformity marking and absent from the Medicines and Healthcare Products Regulatory Agency (MHRA) register. This decision sits within the ASA’s wider work on advertisements asserting treatment for prostrate issues, as part of a consumer-protection drive against such claims. The ASA also received a complaint about Nultqh GB’s Meta advert for a prostate patch, which advanced medicinal claims for an unlicensed item. The...

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NEWS
Weekly UK and EU legal practice compliance highlights: sanctions, AML/CTF, corporate crime, data protection, cyber, SRA sanctions guidance, sexual harassment duty—25 January 2024

In this issue: Financial sanctions AML, CTF & counter-proliferation financing Other financial crime Data protection Cybersecurity Other Practice Compliance updates this week Daily and weekly news alerts New and updated content Latest Q&A Financial sanctions ECJU revises General Trade Licence Russia Sanctions - Vessels The Department for Business and Trade’s Export Control Joint Unit (ECJU) has issued ‘Notice to exporters 2024/02: General Trade Licence Russia Sanctions – Vessels’, indicating that an updated edition of this General Licence takes effect on 18 January 2024. The General Licence sets rules for supplying technical assistance, brokering services, financial services and funds in relation to vessels. See: LNB News 19/01/2024 14. FCDO and OFAC report sanction of Alexander Gennadievich Ermakov The Foreign, Commonwealth and Development Office (FCDO) and the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) have announced that Alexander Gennadievich Ermakov is sanctioned. He played a part in the 2022...

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NEWS
Risk and Compliance: weekly legal and regulatory developments in data protection, sanctions, AML/CTF, economic crime and cybersecurity—25 January 2024

In this issue: Data protection Financial sanctions AML, CTF & counter-proliferation financing Other financial crime Cybersecurity Other Risk & Compliance updates this week Daily and weekly news alerts New and updated content Data protection EDPB adopts report with recommendations to strengthen role of DPOs The European Data Protection Board has approved a report presenting outcomes from its second co‑ordinated enforcement exercise, centred on the appointment and status of Data Protection Officers (DPOs). It highlights barriers DPOs face—such as non‑appointment and inadequate resourcing—and sets out recommendations to reinforce their independence and ensure access to the resources they need. See: LNB News 18/01/2024 22. EDPB publishes case digest on security of processing and data breach notification The European Data Protection Board has issued a one‑stop‑shop case digest on security of processing and data breach notification under Article 32 and Articles 33 and 34 of Regulation (EU) 2016/679 (EU GDPR). The digest sheds light...

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View the related Practice Notes about Agency trade

PRACTICE NOTES
Joint employment: legal presumption, vicarious liability, agency workers, office‑holders, schools, collective bargaining, TUPE, tax and contractual drafting issues

Quick view This Practice Note explores whether an employee can be engaged by two or more employers for the same role at the same time—joint employment (also termed dual employment or multiple employment). It examines the general assumption, the issue of vicarious liability, and the position of agency workers, office-holders and teachers. It also considers the setting of collective bargaining, the effect of TUPE 2006, and tax questions that may arise. Finally, it reviews the factors relevant to written contracts that involve multiple employers. Joint employment is typically discussed in relation to vicarious liability, for instance negligence (see: Vicarious liability, below). Regarding an individual’s employment rights, it appears reasonably clear that the prevailing presumption—that an employee cannot have more than one employer for the same work at the same time—can be displaced in these situations: where the person has two roles with separate employers and the roles are compatible; and where two or more employers act together within a partnership or joint venture ...

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PRACTICE NOTES
Trade effluent discharges: when consents or agreements are required, sewer restrictions, and on-site treatment and permitting (England and Wales)

Consent or agreement To discharge liquid effluent from trade or industrial premises, a consent, or an agreement, must be in place with a local water and sewerage undertaker for release into: a public sewer a private sewer that subsequently connects to a public sewer For information on water companies and water supply/sewerage licensees, see: Ofwat: Licences and licensees. To seek trade effluent consent, a Trade Effluent Notice must be submitted to the sewerage undertaker. Where an application is unsuccessful, the water company will set out the reasons for refusal in writing. There is a right of appeal to Ofwat under section 122 of the Water Industry Act 1991 (WIA 1991). In particular circumstances, the Environment Agency (or Natural Resources Wales in Wales) may impose additional conditions on a consent, due to the substances present in the discharge or the processes that give rise to it. Agricultural holdings, horticulture business, fish farms, and premises used for scientific or experimental purposes are...

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PRACTICE NOTES
Archived UK and EU life sciences tracker: past legislation, case law (patents, SPCs, medical devices, trade marks, access to documents) and consultations, 2017–2019

ARCHIVED This Practice Note is archived and no longer maintained. It contains closed legislative proposals, published judgments and concluded consultations that are no longer listed in the current Life sciences tracker—UK and Life sciences tracker—EU because they are not from the current year. To monitor the progress of current legislative proposals, relevant cases and consultations in life sciences, see Practice Notes: Life sciences tracker—UK and Life sciences tracker—EU. Jump to: Legislation Judgments—Patents Judgments—Supplementary protection certificates Judgments—Medical devices and medicinal products Judgments—Access to documents Judgments—Trade marks Consultations For up-to-date items in life sciences, consult Practice Notes: Life sciences tracker—UK and Life sciences tracker—EU. For key developments and guidance on Brexit within the life sciences sector, including the timeline for relocating the European Medicines Agency (EMA), see Practice Note: Life sciences—Brexit tracker. Legislation For current legislation, refer to Practice Notes: Life sciences tracker—UK—Legislation and Life sciences tracker—EU—Legislation. What’s happening? When?...

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PRECEDENTS
Statutory Carer’s Leave: Model Employer Policy for Great Britain — entitlement, dependants, long‑term care need, notice, postponement, pay and return to work

1 Introduction 1.1 This policy explains how [ insert name of organisation ] (the Company) will handle the statutory entitlement that permits employees to take unpaid time away from work to organise or provide care for a dependant with a long-term care need, and sets out the steps you should follow if you need to request this leave. 1.2 [ This policy applies solely to employees. It does not extend to agency workers, consultants [ , contractors ] [ , volunteers ] [ , interns ] or casual workers. OR This policy applies to all employees, officers, agency workers, consultants [ , contractors ] [ , volunteers ] [ , interns ] and casual workers. ] 1.3 This policy has been [ agreed OR introduced following consultation ] with [ [ enter name of relevant trade union(s) ] OR [ enter name of works council ] OR [ enter name of staff association ] ]. 1.4 In some circumstances, you may have the right to take...

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PRECEDENTS
Precedent content and trade mark licence for website, app and social media (pro-licensee) (England and Wales)

This Agreement is entered into on [ date ]. Parties [ Insert name of licensor ], a company incorporated in [ England and Wales ] under number [ insert registered number ] whose registered office is at [ insert address ] (Licensor); and [ Insert name of licensee ], a company incorporated in [ England and Wales ] under number [ insert registered number ] whose registered office is at [ insert address ] (Licensee), Each of the Licensor and the Licensee is a party, and together the Licensor and the Licensee constitute the parties. Background The Licensee is [ insert details of the Licensee’s background/background to licence or relevant transaction. ] The Licensor has agreed to provide the Licensor Content to the Licensee and to grant the Licensee a licence to use the Licensor Content in accordance with the terms of this Agreement...

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PRECEDENTS
Intra‑group Intellectual Property Licence Precedent (England and Wales): comprehensive terms, optional clauses and schedules for copyright, patents, trade marks, designs, domain names, databases and know‑how

This Licence is entered into on [ insert date ] (the Commencement Date): Parties [ insert licensor name ], a company incorporated in [ England and Wales ] under number [ insert company number ], whose registered office is at [ insert address ] (the Licensor); and [ insert licensee name ], a company incorporated in [ England and Wales ] under number [ insert company number ], whose registered office is at [ insert address ] (the Licensee), (each of the Licensor and the Licensee being a party and, together, the Licensor and the Licensee are the parties). Background (A) [ Explain the relationship between the Licensor and the Licensee. ] (B) [ The Licensor has entered into an agreement with the Licensee [ dated [ insert date ] ] (the Main Agreement) for [ insert other description of relevant transaction (referencing any relevant related agreements) ] (‘ Transaction ’). ] (C) The Licensor has agreed to...

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