ACI
3I0-012 · Question #515
In spite of having agreed to a deal, dealers are not bound to its terms if it is "subject to documentation". What position does the Model Code take with regard to this practice?
The correct answer is A. The practice of making a transaction subject to documentation is not regarded as good practice. See the full explanation below for the reasoning.
Question
In spite of having agreed to a deal, dealers are not bound to its terms if it is "subject to documentation". What position does the Model Code take with regard to this practice?
Options
- AThe practice of making a transaction subject to documentation is not regarded as good practice.
- BIt urges dealers to be bear in mind that this is a common practice for capital market deals.
- CThe Model Code does not comment on the matter.
- DIt recommends that national ACI Associations deal with this issue according to their local customs.
How the community answered
(37 responses)- A70% (26)
- B16% (6)
- C5% (2)
- D8% (3)
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