Where there are shared management responsibilities or where an investment or shareholding exists in a broker by a counterparty:

the broker is not obligated to reveal any material connections provided Chinese Walls are in place.
the broker is not required to reveal any connections at all.
the broker is legally obliged to advise his clients of any material connections that exist.
is a matter which is not covered by the Model Code.

Answer(s): C

Dealers are authorized to deal:

Answer(s): B

Which of the following statements about “standard settlement instructions” (SSI) is correct?

The Head of Operations has the sole responsibility of ensuring the correctness and validity of the SSI set up.
SSIs should be stored and maintained in the bank’s general static data system.
Each institution should have a separate SSI team to prevent I minimise the potential risk of fraud.
SSI staff should be fully integrated within Operations to insure consistent and reliable settlement guidelines.

Answer(s): C

Which of the following is a Model Code good practice regarding the passing of names?

Bank dealers should, wherever possible, give brokers prior indication of counterparties with whom they would be unwilling to do business.
Brokers may divulge the names of principals prematurely to induce a counterparty to transact.
Dealers should never give brokers guidance on the extent of their price differentiation across broad categories of counterparties.
When a principal’s name proves unacceptable to another principal, the broker is bound to divulge who refused it.

Answer(s): A

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