.03 Due Diligence. For the purposes of paragraph b) (4) of this rule, the duty due diligence of the exporting company may include, without limitation, an investigation of the exporting company in the business model and product range of the company to be imported, ownership and customer positions, FOCUS and similar reports, verified accounts and claims and disciplinary data. Of course, there are other factors that clients take into account when choosing a leading broker, outside of their size and balance sheet. One of the key areas in which carrier brokers must compete is the breadth and timeliness of information they can provide to their broker clients. The sooner a carrier broker can provide accurate information about the transactions, margin status and level of security of its account holders, the more useful it is for the carrier broker to be useful with respect to the client`s risk management activities. Carrying brokers employ employees and technologies that allow them to perform large-scale back-office work for a network of broker clients. Instead of imitating administrative bureaucracies similar to any broker, economies of scale can be achieved if these redundant administrative tasks are simply outsourced to a small group of transporting brokers. This gives their broker clients the opportunity to focus on revenue-generating activities. .05 Customer Notification. For the purposes of paragraph (d) of this rule, it is not necessary to notify the customer of an amendment to any of the parties to the transportation contract if, in accordance with current FINRA rules and federal securities laws, the accounts of these customers are transferred in accordance with the following conditions: (a) ACATS with an approved transfer instruction form (TIF); or b) a procedure outside ACATS in which customers are notified by another mechanism, such as positive or negative response.
This agreement exists between an introductory broker and a carrier broker for the purpose of setting up a type (1-4) setting up/brokerage contract. A type (1-4) introduction/brokerage door is one of four of the introduction carrying brokerage arrangements, where an introductory broker is allowed to introduce clients to a carrier broker. In this agreement, the type (1-4) of carrier broker has agreed to provide certain services, including clearing and registration activities for the introductory type broker (1-4). The agreement is required by the IIROC under The Dealer`s Rule 35, introduction/carrying broker arrangements. The IIROC must approve the agreement before it enters into force. The leading brokers will also compete on the basis of the different markets and types of products that their customers will be able to access through them. For example, if a broker wants to start trading on a new exchange or with a rare financial instrument, the bearer broker should be able to meet that demand. Introductory/transportation agreements are concluded to allow one member (the “introductory broker”) to use another member`s back-office facilities (the “carrier” broker). The services provided can include any combination of: in the same way, transportation brokers will strive to maintain high levels of after-sales service while offering competitive rates.
Carrying brokers will often provide clients with dedicated account managers who can solve any problems when they arise. When dealing with particularly large or high-value clients, bearer brokers often negotiate special fees, such as.B. waiver of certain transaction or transaction costs, provided certain amounts or assets under management (AMU) are maintained. .01 Material changes. For the purposes of paragraph (b) paragraph 1, this rule contains substantial amendments, but is not limited to the following amendments: (a) the attribution of responsible responsibilities required by this rule; (b) termination clauses of the importing company; (c) any condition or provision affecting the liability of the parties; and (d) the parties to the agreement (including z.B the inclusion of a new contracting party to the agreement, at para. B example an agreement to “iron”