ACI
3I0-012 · Question #513
What does the Model Code recommend regarding the practice of "name switching/substitution"?
The correct answer is B. If requested by a broker to clear a transaction through name switching, a dealer must ensure that such. See the full explanation below for the reasoning.
Question
What does the Model Code recommend regarding the practice of "name switching/substitution"?
Options
- ADealers may seek a compensation payment in favor of the bank or an adjustment to brokerage bills
- BIf requested by a broker to clear a transaction through name switching, a dealer must ensure that such
- CThe practice of name switching/substitution is neither acceptable nor desirable.
- DName switching/substitution transactions should be executed as promptly as possible not considering
How the community answered
(39 responses)- A5% (2)
- B79% (31)
- C13% (5)
- D3% (1)
Community Discussion
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