Managing sub-IBs · Lesson 3 of 3
Oversight and protecting your reputation
4 min read
Draft lesson — under editorial review
Recruiting and training sub-IBs is not the end of your responsibility. One sub-IB posting fake results or taking money from clients can damage your reputation, your broker relationship and the clients involved. This lesson covers ongoing oversight: monitoring, complaints, removing people who break the rules, written agreements and record keeping.
Why oversight is your responsibility
Your name is attached to your network. Brokers often hold master IBs responsible under their agreements for how sub-IBs behave, and may withhold commission or end the agreement for the whole network if problems are not dealt with. Depending on the jurisdiction, regulatory responsibility can also extend to people who act on your behalf or under your arrangements. In the UAE, for example, check with the Capital Market Authority (CMA, formerly the SCA) for onshore UAE, the DFSA for the DIFC or the FSRA for ADGM, depending on where you and your network operate, or with a qualified adviser, before you assume you are only responsible for your own posts.
Monitoring marketing
Oversight works best as a simple routine rather than occasional panic.
| How often | What you do |
|---|---|
| Weekly | Review a sample of sub-IB posts, plus every paid advert and any post that mentions results |
| Monthly | Check each sub-IB's channels, groups and landing pages; review client feedback |
| Quarterly | Run a refresher session and review each sub-IB against the code of conduct |
| When something changes | Brief everyone on new broker terms or regulatory updates |
Worked example: a weekly sample
Suppose you have 12 sub-IBs, each publishing about 5 posts a week.
- Total posts per week: 12 × 5 = 60
- If you review 1 in every 5 posts: 60 ÷ 5 = 12 posts a week
On top of that sample, review every paid advert and every post that shows trading results, because those carry the highest risk. For any sub-IB in their first month, or anyone who has recently had a warning, review everything rather than a sample.
Practical ways to monitor include following each sub-IB's public channels, joining their community groups as an observer, and asking for copies of paid adverts before they run.
Handling complaints
Complaints are useful information, even when they are uncomfortable. A clear process helps:
- Acknowledge the complaint promptly and politely.
- Record the date, who complained, what they said and any evidence.
- Do not argue in public. Move the conversation to a private channel.
- Investigate by checking the content or messages involved and speaking to the sub-IB.
- Involve the broker where the complaint concerns an account, deposits, withdrawals or trading. Point the client to the broker's formal complaints procedure; depending on the jurisdiction, they may also be able to escalate to a regulator or an ombudsman.
- Fix and learn. Correct the problem, update training if needed and record the outcome.
Removing bad actors
Respond in proportion to what happened, and be consistent.
| Situation | Typical response |
|---|---|
| Minor first issue, such as a missing risk warning | Written warning; the content is corrected or removed |
| Repeated or more serious breaches | Suspension from the network while the issue is resolved, with closer monitoring |
| Red-line conduct, such as fake results, handling client money or targeting minors | Removal from the network, the broker informed, and any affected clients pointed to the broker |
Your written agreement must give you the right to take these steps, including the right to request that the broker removes the sub-IB from your structure.
Written agreements
Every sub-IB should sign a written agreement before they start. It should cover at least:
- the scope of their role and the countries they may market into
- commission terms, stating that commission depends on genuine client trading and broker terms and can be zero
- the code of conduct and marketing approval process
- prohibited conduct, including the red lines
- your right to monitor their marketing and request changes
- warning, suspension and termination procedures
- data protection and confidentiality
- record-keeping duties
Ask a qualified lawyer to review the template, since contract and data protection rules vary between countries.
Record keeping
Good records protect clients, sub-IBs and you. Keep:
- signed agreements and codes of conduct
- training attendance and quiz results
- copies of approved marketing, with dates
- monitoring logs and sample reviews
- complaints and how they were resolved
- warnings, suspensions and terminations
- commission statements from the broker
Keep records for as long as your broker agreement and the law in your jurisdiction require, store them securely and limit who can access any personal data.
Key takeaways
- Brokers, and depending on the jurisdiction regulators, may hold you responsible for your network's conduct.
- Monitor sub-IB marketing on a regular routine, with extra scrutiny for adverts, results and new or warned sub-IBs.
- Handle complaints through a clear, private process and involve the broker for account matters.
- Respond to breaches in proportion, and remove anyone who crosses a red line.
- Use written agreements and keep good records to protect clients and your reputation.
Educational content only — not financial advice. Trading leveraged products such as forex and CFDs carries a high risk of losing money.