CMFAS RES 1A Securities Dealing Practices & Skills question: relative of the account holder to save time

CMFAS RES 1ASecurities Dealing Practices & Skills

Before executing a client's instruction, the representative should: (a) check the client's profile against the product's risk and, if they do not match, advise against the transaction, document the advice and obtain the client's signature. (b) escalate to management for a decision if the client insists on proceeding against the advice. (c) ensure the client's transaction is executed before any of the representative's own transactions, even where there is no conflict of interest. (d) accept instructions from any relative of the account holder to save time. Which of the following are CORRECT?

A (a), (b), (c) and (d)
B (a), (b) and (c)
C (a) and (d)
D (b) and (c)

Show the answer and explanation

Answer: B. (a), (b) and (c)

Guide 5.5.2 pre-execution checklist: also check the agreed portfolio mix, black-out periods, conflicts, third-party or connected-person dealing, material non-public information, market conduct rules and, crucially, the account mandate so instructions come only from authorised parties.

Common mistake

Mandate first: only authorised parties can instruct.

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