Magister Operis · Broker 101

Fee Agreements

Putting intermediary fees in writing so they survive a bank's review.

(IMFPA, MFPA, FPA, PPA, CONSULTING AGREEMENT, PAY ORDER, ETC.)

 

These documents can come titled in a number of ways...

but essentially...all have the same mission

...which is to get brokers/intermediaries predictably paid.

 

Magister Operis™ considers "MFPAs" to be priority 1.1 rather than 1.0

Magister Operis™ considers "quality relationships" to be priority 1.0.

 

It is only the "relationships" that give all "MFPAs" any value.

Right?

 

POSSIBLE FEE AGREEMENT CONFIGURATIONS

  1. The buyer pays the fees,
  2. The seller pays the fees,
  3. Both the buyer and the seller are paying fees separately,
  4. Or the seller pays the sellside and the buyer pays the buyside.

 

Magister Operis can easily configure FPAs in any four different ways above.

  • Sooner rather than later... a clear outline of all parties towards the principals needs to be established so that professionally formatted paperworks can be assembled as soon as possible..
  • Be careful not to misuse of the word “mandate”. A real mandate can swiftly evidence full signatory banking power on behalf of his/her principal and gets paid by his/her principal rather than as a broker/intermediary.
  • Be ready to provide your banking information or provide paymaster information for the fee agreement. A payer will not be asked to sign sanitized and/or incomplete agreements of any kind.

 

Every engagement is governed by the firm's Method and Disclaimer. Return to the Broker 101 overview.