You Hear from a Client of Good Standing That a Major

question 125

Multiple Choice

You hear from a client of good standing that a major market participant has taken major losses on its proprietary trading book and is desperate for liquidity. You are not convinced that the story is true, but have a friend at another bank who you know has very large exposures to this firm and would be seriously damaged by a default. What advice does the Model Code give?

• A) Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should not be passed on in any circumstances.
• B) Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should be discussed only with great care.
• C) Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should be reported to the regulator in order to provide warning of possible systemic problems.
• D) You have a duty to warn counterparties but should make clear that the information is unsubstantiated.

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Definitions:

Crowdsourcing

The practice of collecting information, asking for assistance, and reaching out to the community for help to solve a problem or address an opportunity online in a centralized space.

Crowdfunding

The practice of raising money online with the help of social media community outreach and advocacy efforts in small and large donations.

Personalization

The process of tailoring a service or product to accommodate specific individuals or groups.

Social Media Professionals

Individuals who specialize in creating, managing, and analyzing content on social media platforms to engage audiences and achieve business goals.