When dealing with customers, financial market professionals are advised by the Model Code to clarify that all transactions are entered into solely at each partys risk by explicitly agreeing in writing that:
A) The customer understands the structure of the transaction.
B) The customer has made its own assessment and independent decision to enter into the transaction and is doing so at its own risk and for its own account.
C) No fiduciary or advisory relationship exists between the parties, and all the information is has received is not to be construed as investment advice or a recommendation to transact.
D) All of the above.

Question

Quizplus · Accepted Answer

All of the above choices are advised by the Model Code to be explicitly agreed upon in writing to clarify that all transactions are entered into solely at each party's risk when dealing with customers. These include ensuring that the customer understands the structure of the transaction, making their own assessment and independent decision to enter into the transaction at their own risk and for their own account, and acknowledging that no fiduciary or advisory relationship exists and information received is not to be construed as investment advice or a recommendation to transact.

When Dealing with Customers, Financial Market Professionals Are Advised by the Model