Conduct of Business (Part X)

Question 1

How are transactions placed into a client account resulting from a missed deal required to be booked and why?

Answer 1

Via the on-line backdating facility in the BDA system using the code MD to ensure that the contract note reflects that the member traded as a principal with the client.

Question 2

What is the main objective in ensuring that transactions recorded in misdeals accounts are appropriatly controlled?

Answer 2

That any potential prejudice to clients affected by such transactions is avoided.

Question 3

What client information must a member ensure is loaded on the client maintenance (CLMNT) screen on the BDA system?

Answer 3

1. The full name.
2. Address.
3. Telephone number.
4. Identification or registration number of the account holder.

Question 4

What information must be loaded on either the client maintenance (CLMNT) screen or the account relationship (ARMNT) screen on the BDA system using the REL code if the person placing the instructions on a client account is not the individual in whose name the account is held or the account is not in the name of an individual, unless the client is a bank, or a financial services provider, or the regulated foreign equivalent of such entities?

Answer 4

1. The full name.
2. Address.
3. Telephone number.
4. Identification or registration number of such person.

Question 5

If an account holder is not an individual, what information must be loaded in the Institution Code field of the Client Maintenance screen on the BDA system?

Answer 5

The legal status of the client as referred to in the rules.

Question 6

On which client accounts must a staff indicator be loaded in the relevant field on the client maintenance screen on the BDA system?

Answer 6

All accounts in which an employee of a member has a beneficial interest or on which they place instructions.

Question 7

What steps is a member required to take prior to loading a controlled client account as a non-resident?

Answer 7

1. Obtain documentation confirming that the client is in fact a non-resident.
2. Maintain a record of such verification.

Question 8

How is a CSP required to ensure that securities received from a non-resident controlled client are in fact non-resident securities?

Answer 8

By verifying that the securities have been transferred from another non-resident account operated by -
1. another member;
2. a CSDP; or
3. a financial services provider;
and retaining a record of such verification.