PROFESSIONAL CODE OF ETHIC
I. THE BROKER'S DUTIES TO HIMSELF
I-A OBJECTIVENESS OF INFORMATION
Information must be as full as possible. The broker's knowledge of the market must be presented in full and with a totally independant mind.
I-B SOLVENCY AND COMMERCIAL MORALITY
The broker must conclude business only with clients who, in all consciousness, he considers as solvent and of absolute commercial morality.
Any information which may leave a doubt in his mind must be checked by him prior to conclusionof the business.
If, during the transaction of a deal, the broker should come to learn of now information whic was unfavourable to one of the clients, he is under obligation to check on it and, should such information prove well-founded, the brocker must warn the other party of its existence.
I-C CONFIRMATION OF BUSINESS CONCLUDED
The terms of the confirmation sent to the seller and to the buyer must be scrupulously identical. Confirmation must be sent to both clients within the shortest possible time.
Confirmation must include the full conditions agreed to and must not include any other conditions. The brokerage rate must be indicated on the copy sent to the party owing it.
I-D PRFESSIONAL SECRECY
When negotiating a deal or at any other time, the broker must not divulge the names of the clients, even when asked to do so.
On the other hand, and in order to position values on the market, he has the right, inasmuch as he does so with the objectiveness provided for in I-A of these rules, to provide information regarding current prices and other specific conditions.
I-E NON-PARTICIPATION
The broker cannot under any circumstances play a part in the contract and he must not undertake any trading on his own behalf or together with one of the clients.
II. BROKER'S DUTIES TO HIS CLIENTS
II-A FIRM OFFER OR BID
Any firm offer or bid must obligatorily include a time limit for replie.
Agreement given prior to expiry of the time limit provided for above commits the given of the firm offer or bid irrevocably.
COMMITMENT OF A CLIENT
During the time limit for replies, the giver of the firm offer or bid may release himself from his offer / bid except incases where the brocker has committed himself. In this case the latter is under obligation to :
1) designate nominally the client with whom he has made the commitment,
2) call this client immediately ans request an immediate response from him, a response with which the party which has sought to release himself must comply.
BROKER'S COMMITMENT
When firmly committed to any client and to a time limit for replies, and during this time, the broker must not seek or take, under the same conditions, an offer or bid from any other client.
II-B CONCLUDING A DEAL
As soon as a deal is concluded, the broker must immediately give the agreement to his clients, designating them by name.
II-C PROPOSAL TO ACT
The broker must not make any proposal to act in any way which is against commercial proctive, either before, during or after the conclusion of a deal.
II-D DISPUTES
If, during a deal, a disputeshould arise between the parties, of any sort whatsoever, the broker should try to find an amicable settlement.
This settlement must be based on the general or specific conditions contained in the contract, which presupposes that the broker has full knowledge of the basic contracts which govern the business inwhich he deals.
The broker must make the greatest efforts to avoid, as far as possible, arbitration or a lawsuit, whilst remaining perfectly objective and neutral.
III THE BROKER'S DUTIES TO HIS FELLOW BROKERS
III-A COMPETITION
Competition must only be used between brokers in terms of :
1) Quality of information,
2) precision of a contract writing,
3) monitoring of deals,
III-B ABSENCE OF CRITICISM OF BUSINESS NEGOCIATED BY FELLOW BROKERS
The broker must not make any unfavourable comments about his fellow brokers in general and particulary about the business negotiated by the latter.
III-C RELATIONS WITH CORRESPONDANT BROKERS
In cases where a broker works with one or several "correspondent brokers" he must not contract directly, a t a later date, the clients which have been put into contact with him as lon as relations between them continue, and also in cases where the clients put into contact with him are not part of his habitual clientele.