ACI
3I0-012 · Question #63
A broker offers a dealer a financial incentive in the form of a price reduction to the previously agreed brokerage arrangements between the firms.
The correct answer is B. The offer should be agreed only by directors or senior management on each side and should be recorded. See the full explanation below for the reasoning.
Question
A broker offers a dealer a financial incentive in the form of a price reduction to the previously agreed brokerage arrangements between the firms.
Options
- AThis is considered as a normal discount for bulk business.
- BThe offer should be agreed only by directors or senior management on each side and should be recorded
- CThe offer should be expressly approved by both the individuals concerned and clearly recorded in writing.
- DThe Model Code strongly discourages such practices.
How the community answered
(21 responses)- A10% (2)
- B71% (15)
- C5% (1)
- D14% (3)
Community Discussion
No community discussion yet for this question.