Where there are shared management responsibilities or where an investment or shareholding exists in a broker by a counterparty:
A) the broker is not obligated to reveal any material connections provided Chinese Walls are in place.
B) the broker is not required to reveal any connections at all.
C) the broker is legally obliged to advise his clients of any material connections that exist.
D) is a matter which is not covered by the Model Code.

Question

Quizplus · Accepted Answer

According to the Model Code, the broker is legally obliged to advise his clients of any material connections that exist when there are shared management responsibilities or where an investment or shareholding exists in a broker by a counterparty. This is to ensure transparency and avoid conflicts of interest.

Where There Are Shared Management Responsibilities or Where an Investment