ACI
3I0-012 · Question #586
It is now permissible in most markets for brokers to be owned by banks and other principals. Where there is shared management, or a share holding or other investment in a broker by a counterparty:
The correct answer is C. The broker should advise the other counterparty of the connection. See the full explanation below for the reasoning.
Question
It is now permissible in most markets for brokers to be owned by banks and other principals. Where there is shared management, or a share holding or other investment in a broker by a counterparty:
Options
- AThe broker is not obligated to reveal the connection provided Chinese Walls are in place.
- BThe broker is not obligated to reveal the connection in the professional market.
- CThe broker should advise the other counterparty of the connection.
- DThe matter is covered in the Model Code.
How the community answered
(39 responses)- A13% (5)
- B3% (1)
- C77% (30)
- D8% (3)
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