What does the Model Code recommend regarding the practice of “name switching/substitution”?
A.
Dealers may seek a compensation payment in favor of the bank or an adjustment to brokerage bills from the broker for switching names.
B.
If requested by a broker to clear a transaction through name switching, a dealer must ensure that such activities have the prior approval of senior management.
C.
The practice of name switching/substitution is neither acceptable nor desirable.
D.
Name switching/substitution transactions should be executed as promptly as possible not considering credit limits and policy guidelines.
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