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

question 522

Multiple Choice

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.

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Definitions:

Chapter 13

A portion of the U.S. Bankruptcy Code permitting individuals earning a steady income to devise a strategy for repaying their debts either in full or in part.

Liquidation Proceeding

A legal process in which a company's assets are sold off to pay creditors.

Chapter 7

A section of the United States Bankruptcy Code that involves the liquidation of a debtor's assets to pay off creditors.

Debtor

A person or entity that owes a debt to another, typically financial in nature.