SIDC Module 6 Market conduct, client treatment and AML/CFT question: online trading account to sell

SIDC Module 6Market conduct, client treatment and AML/CFT

A client stranded overseas phones her dealer's representative, gives him her password and asks him to log in to her online trading account to sell 5,000 shares. What should he do?

A Log in with his branch manager's approval and confirm the trade to her the same day
B Log in after she confirms the instruction by email, keeping that email on file as her authorisation
C Refuse to log in, because no one other than the client may access or use her online trading account
D Log in, since access with the account owner's own consent is not unauthorised access to her account

Show the answer and explanation

Answer: C. Refuse to log in, because no one other than the client may access or use her online trading account

Paragraph 8.02 of the Guidelines on Market Conduct and Business Practices says that, notwithstanding the general ban on unauthorised access in paragraph 8.01, no person is allowed to access or use a customer's online trading account in whatever circumstances. Paragraph 8.03(a)(ii) requires the stockbroking company to guard against anyone other than the account owner using it for trading. The client's consent does not change this, so an email confirmation, a manager's approval or treating the access as authorised all fail. He can still take her order through the company's normal dealing channel, but he must not log in as her. Source: Guidelines on Market Conduct and Business Practices for Stockbroking Companies and Licensed Representatives (SC-GL/SBC-2008 (R6-2023), revised 7 September 2023) paras 8.01-8.03 (as at October 2026).

Common mistake

Candidates treat client consent as curing the problem; paragraph 8.02 bars anyone else from using an online account in any circumstances.

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Original study material mapped to the public SIDC Module 6 syllabus. Unofficial, not endorsed by SIDC or the SC. Verify figures and rules against current guidance before relying on them.