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Authorised signatory lists: Difference between revisions
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''Given the nature and large volume of business we handle for so many different clients, it is not practicable to verify on a trade-by-trade basis whether a given client employee has specific internal authorisation to transact with us on that client’s behalf.'' <br> | ''Given the nature and large volume of business we handle for so many different clients, it is not practicable to verify on a trade-by-trade basis whether a given client employee has specific internal authorisation to transact with us on that client’s behalf.'' <br> | ||
''While we have systems and controls to ensure that client instructions are properly authorised and provided by persons generally empowered to issue them, we cannot police client authorisation policies on a client’s behalf or take responsibility for client employees’ compliance with them, and we therefore cannot accept any purported restriction on a client’s liability to perform transactions instructed by your personnel purely because they happen to be in breach of your internal mandates or authorisations.'' <br> | ''While we have systems and controls to ensure that client instructions are properly authorised and provided by persons generally empowered to issue them, we cannot police client authorisation policies on a client’s behalf or take responsibility for client employees’ compliance with them, and we therefore cannot accept any purported restriction on a client’s liability to perform transactions instructed by your personnel purely because they happen to be in breach of your internal mandates or authorisations.'' <br> | ||
''As between us, therefore, the presumption must be that losses (or gains) that arising from any such unauthorised orders originating within your organisation will be for your account.'' | ''As between us, therefore, the presumption must be that losses (or gains) that arising from any such unauthorised orders originating within your organisation will be for your account.''}} | ||
Everything about authorised signatory lists is wrong, and is indicative of what is so messed up about financial services | ''Everything'' about authorised signatory lists is wrong, poor, and unbecoming of a professional financial services organisation. That these are even proposed, let alone accepted, is indicative of what is so messed up about risk management and legal practice in the financial services industry. The answer is not to wash your hands of your own problems by burying something in a notice — which, odds on you won’t update, giving you a free option to walk away from any trade a subsequently-authorised trader places, since you know your broker will accept it — but to actually monitor your employees properly. What with modern technology it is not exactly hard to do. | ||
{{sa}} | {{sa}} | ||
*[[Don’t take a piece of paper to a knife fight]] | *[[Don’t take a piece of paper to a knife fight]] | ||
{{C|sticking it to the man}} | {{C|sticking it to the man}} | ||