What Does the Model Code Say About the Responsibility of a Broker

question 171

Multiple Choice

What does the Model Code say about the responsibility of a broker in handling suspicious transactions?

• A) Suspicious transactions should be reported by the principals.
• B) Brokers need to make staff aware of the problem and exercise vigilance.
• C) A broker should report any suspicions about a transaction to the other counterparty.
• D) Brokers should advise clients to reject the name.

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Definitions:

Repudiated

The act of rejecting or disavowing a claim, contract, or obligation, especially in a formal or official manner.

Enemy Alien

A non-citizen living in a country who is considered an enemy due to their nationality or citizenship during a time of war.

Citizenship

The status of being recognized as a legal member of a specific country, with associated rights and responsibilities.

Void

Having no legal force or effect; not valid or legally binding.