Which of the following is a Model Code good practice regarding the passing of names?
A) Bank dealers should, wherever possible, give brokers prior indication of counterparties with whom they would be unwilling to do business.
B) Brokers may divulge the names of principals prematurely to induce a counterparty to transact.
C) Dealers should never give brokers guidance on the extent of their price differentiation across broad categories of counterparties.
D) When a principal's name proves unacceptable to another principal, the broker is bound to divulge who refused it.

Question

Quizplus · Accepted Answer

Model Code good practice regarding the passing of names suggests that bank dealers should, wherever possible, give brokers prior indication of counterparties with whom they would be unwilling to do business. This enhances transparency and helps to avoid potential conflicts of interest. Option B is incorrect because prematurely divulging the names of principals is not ethical. Option C is incorrect because dealers should give brokers guidance on the extent of their price differentiation across broad categories of counterparties. Option D is incorrect because brokers are not bound to divulge who refused a principal's name if it proves unacceptable to another principal.

Which of the Following Is a Model Code Good Practice