| V. Settlement |
- General Policies Related to Settlement
- All trades of any product to the client must be affirmed by a confirmation document.
- Confirmations are to be issued and received by the operations group, independent of sales personnel.
- Discrepancies and disputes must be addressed immediately, including cancellations and/or revisions.
- Failed Trades
The operations staff must monitor the movement of funds (payment and receipt) on the value date against the movement of the underlying product (receipts and deliveries) and must notify the sales personnel of any fails, in whole or in part, on value date.
Fails by counterparty must be reported to the sales personnel responsible for the counterparty and reported to the proper levels designated by the institution.
- Inquiries and Disputes Resolution
Every effort must be made to deal with disputes and inquiries promptly, efficiently and courteously.
To facilitate communication with counterparties, the financial intermediary should for each product or portfolio, where relevant, inform all counterparties of the institution's operational contact person, title, telephone number, facsimile number, telex number and postal address. Similarly, the financial intermediary should obtain the same information from its counterparties.
When responding to inquiries or resolving disputes concise and accurate details of all conversations should be retained giving details of the person contacted, title, telephone number, nature of inquiry and dispute, outcome of the conversation, date and time of conversation.
Compensation for late receipts of consideration should be claimed as soon as possible in accordance with market practice.
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