QUESTION: 325 Topic: 4, Volume D

The Model Code recommends that standard terms and conditions be used in legal documents. Which one of the following statements is correct?

When trading in financial products described by the Model Code, dealers and voice brokers need not clarify whether they propose to use standard terms.
Standard terms and conditions should be signed bilaterally by senior management of both principals before any applicable market transactions are entered into.
When using legal agreements any proposed modifications or choices offered in the agreement must be clearly stated as soon as the trade is agreed.
For many instruments, standard master agreements issued by recognized authorities need not be signed by senior management of the principals intending to transact business.

Answer(s): B

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QUESTION: 326 Topic: 4, Volume D

For which one of the following disputes is the Chairman and members of the ACI’s CFP ready to assist through the ACI’s Expert Determination?

all legal disputes
disputes related to market practice or conduct as set out in the Model Code or in any other Code of Conduct
disputes between two market participants, at least one of them being a member of ACI
disputes related to over-the-counter financial instruments as detailed in appendix four of the Model Code

Answer(s): D

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QUESTION: 327 Topic: 4, Volume D

Which one of the following statements about claims is true?

Claims are not expected to be submitted after 15 days from the actual settlement date.
Claims of less than USD 5,000.00 are not expected to be submitted.
Claims are calculated on the full principal amount of the failed transaction. Interest rates are imposed by the agent banks, unless a higher negotiated rate is to be applied.
Acknowledgement of receipt of a claim should be confirmed within 48 hours by email or SWIFT.

Answer(s): C

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QUESTION: 328 Topic: 4, Volume D

What should be done if a broker fails to conclude a transaction at the quoted price and the dealer has to accept a lesser quote to neutralize his risk?

‘stuff’ the broker and insist on a replacement name at the original price
accept a bank transfer compensation payment in favour of the bank or adjustment to brokerage bills
refuse any sort of compensation from the broker for the amount concerned
acknowledge the excuses of the broker and accept his offer of entertainment in compensation for the failed transaction

Answer(s): B

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QUESTION: 325 Topic: 4, Volume D

QUESTION: 326 Topic: 4, Volume D

QUESTION: 327 Topic: 4, Volume D

QUESTION: 328 Topic: 4, Volume D