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3I0-012 · Question #720

When a broker makes an error on payment instructions The Model Code recommends that

The correct answer is D. The broker's liability should be limited as he is not in a position to directly rectify the situation. See the full explanation below for the reasoning.

Question

When a broker makes an error on payment instructions The Model Code recommends that

Options

  • AThe broker remains liable for the resulting difference for 3 full business days following the date of the
  • BThe broker remains liable until the error is discovered.
  • CThe broker is not liable at all.
  • DThe broker's liability should be limited as he is not in a position to directly rectify the situation.

How the community answered

(46 responses)
  • A
    2% (1)
  • B
    17% (8)
  • C
    9% (4)
  • D
    72% (33)

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Full 3I0-012 Practice