Where dealing through an intermediary with an unidentified principal, the Model Code recommends:
A) It is good practice for compliance, legal or credit functions to identity counterparties before the execution of a deal.
B) Management should have in place a clearwritten policy and procedures governing such transactions.
C) Management needs to be aware of the risks involved, particularly with respect to credit exposure and money laundering.
D) All of the above.

Question

Quizplus · Accepted Answer

The Model Code recommends all of the above measures when dealing through an intermediary with an unidentified principal to mitigate the risks involved in such transactions. It is good practice to identify counterparties before executing a deal, management should have clear policies and procedures governing such transactions, and should be aware of the risks involved, particularly with respect to credit exposure and money laundering.

Where Dealing Through an Intermediary with an Unidentified Principal, the Model