Agent: Difference between revisions
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**between True Agent and Buyer. | **between True Agent and Buyer. | ||
*Buyer pays True Agent a Commission calculated on the contract between Buyer and Seller. | *Buyer pays True Agent a Commission calculated on the contract between Buyer and Seller. | ||
===Asset Managers as agents=== | |||
Liability as a principal for [[unallocated trades]] | |||
===See also=== | ===See also=== | ||
Revision as of 14:49, 28 June 2016
An Intermediary acts as True Agent if, acting on Buyer’s behalf, it agrees the purchase of an Asset from Seller by Buyer.
- True Agent acts at all times on Buyer’s behalf and never in its own capacity.
- A True Agent will not record the Asset in its own trading books at any time.
- There is never any contract with respect to the Asset either
- between True Agent and Seller, or
- between True Agent and Buyer.
- Buyer pays True Agent a Commission calculated on the contract between Buyer and Seller.
Asset Managers as agents
Liability as a principal for unallocated trades