SIDC Module 6 Contract law, the stockbroker-client relationship and negligent misstatement question: trades and to inspect the contract

SIDC Module 6Contract law, the stockbroker-client relationship and negligent misstatement

Client Mei asks her PO for copies of all entries in its books on her trades and to inspect the contract notes for them. Which of the following are correct under the CMSA? (i) The PO must supply the copies on demand (ii) The PO may levy a reasonable charge for the copies (iii) The PO may charge a fee for her inspection of the contract notes (iv) A person she authorises may obtain the copies for her

A (i) and (iii) only
B (ii) and (iv) only
C (i), (ii) and (iv) only
D (ii), (iii) and (iv) only

Show the answer and explanation

Answer: C. (i), (ii) and (iv) only

Section 114(1) of the CMSA requires a CMSL holder dealing in securities to supply, on demand, to its client or any person the client authorises, copies of all entries in its books relating to transactions carried out for that client, and entitles it to levy a reasonable charge for them. So (i), (ii) and (iv) are correct. Under s.114(2) the client or her authorised person may inspect any contract notes or documents relating to those transactions at any time free of charge, so (iii) is wrong. This mirrors the agent's general duty under s.166 of the Contracts Act 1950 to render proper accounts to the principal on demand. Source: CMSA 2007 s.114(1)-(2); Contracts Act 1950 (Act 136) s.166 (as at October 2026).

Common mistake

Candidates swap the two rules: copies of book entries may carry a reasonable charge; inspecting contract notes is free.

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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.