The global, full-service brokerage and clearing firm known as ADM Investor Services (ADMIS) forms part of the larger Archer Daniels Midland (ADM) group. The organisation is known and respected worldwide for the services it provides to banks, institutional investors, corporations, high-net-worth individuals, and commodity trading advisors (CTAs).
With its provision of such services as brokerage, clearing, trade execution, and support for futures, options, equities, and alternative investments, ADM Investor Services will be a familiar name for many individuals and organisations that might need to engage a process agent service.
We are aware here at London Registrars, however, that some confusion might arise as to whether a UK process agent is needed for clients seeking to enter into the ADM Investor Services Terms of Business.
So, in today’s article, we will provide some clarity in response to this frequently asked question.
What is the ADM Investor Services Terms of Business?
The ADM Investor Services Terms of Business – sometimes referred to as simply the “Terms of Business” or “Customer Agreement” – is the standard contractual agreement provided by ADMIS. This document sets out the legal terms governing the relationship between ADMIS and its clients.
Key elements of the ADMIS Terms of Business include:
- Account opening and maintenance. Requirements are typically set out for initial and maintenance margins, deposits, and funding.
- Regulatory compliance. All transactions are subject to applicable law and the rules and regulations of the exchanges and markets where business is conducted.
- Client onboarding. It is necessary for potential new clients’ investment experience, financial status, and corporate structure to be assessed, to ensure compliance with regulatory requirements.
- Risk management. ADMIS has policies and procedures in place to monitor and manage risks, encompassing market exposure, counterparty risk, and liquidity risk.
- Limitation of liability. The document’s terms typically include clauses that limit ADMIS’s liability for indirect, incidental, special, punitive, or consequential damages.
- Fees and charges. Details are outlined in the agreement on commissions, interest, and costs associated with account carrying or deficits.
Is the ADM Investor Services Terms of Business governed by US or UK law?
To provide important clarity: while ADMIS is a United States-based futures commission merchant (FCM) headquartered in Chicago, Illinois, for international clients, it may route services through affiliates like ADM Investor Services International Limited (ADMISI) in London.
ADMISI has its own adapted Terms of Business compliant with the rules of the Financial Conduct Authority (FCA) in the UK. This version of the document is therefore governed by English law, with service of process in the courts of England and Wales.
Does, then, the ADM Terms of Business require a UK process agent to be appointed?
If you are a non-UK client looking to enter into this kind of agreement with the UK arm of ADM Investor Services, and you do not already have an address in England, you will generally be required to appoint a UK-based process agent.
This is important because in the event of a later dispute occurring and legal action needing to be taken against you, it will typically be much quicker and simpler a process for the other party to serve papers (and therefore to start legal proceedings against you) if a UK process agent has already been appointed to represent you.
You can generally expect, then, that it will be a contractual requirement to appoint a UK process agent. You probably won’t have the option of saying no to this condition, unless you walk away from the agreement altogether.
Ultimately, if you are a non-UK client of the UK arm of ADM Investor Services, and you are concerned about English law exposure, we would advise you to review the jurisdiction clause in the specific agreement, or to consult ADMIS directly.
If you require a UK process agent, you can have the utmost faith in London Registrars
Our own team at London Registrars would be pleased to give advice in relation to our own process agency service in the UK, in light of your particular situation and requirements.
To learn more, please feel free to download our process agency brochure, or to enquire to us directly via phone or email.