ACI
3I0-012 · Question #357
Where there are shared management responsibilities or where an investment or shareholding exists in a broker by a counterparty:
The correct answer is C. the broker is legally obliged to advise his clients of any material connections that exist. See the full explanation below for the reasoning.
Question
Where there are shared management responsibilities or where an investment or shareholding exists in a broker by a counterparty:
Options
- Athe broker is not obligated to reveal any material connections provided Chinese Walls are in place.
- Bthe broker is not required to reveal any connections at all.
- Cthe broker is legally obliged to advise his clients of any material connections that exist.
- Dis a matter which is not covered by the Model Code.
How the community answered
(21 responses)- A5% (1)
- B14% (3)
- C71% (15)
- D10% (2)
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