📘 Knowledge Base

Confirmation of Principal — FAQ & Client Benefits

🔹 What Is the Confirmation of Principal?

The Confirmation of Principal is a formal bank-issued acknowledgment that identifies who the true Principal is in a transaction and confirms that all parties are dealing directly and transparently with that Principal.

It is commonly used when:

• A broker, mandate, or intermediary introduces a transaction

• The bank needs to confirm there is only one Principal

• Privacy, authority, and fee protection must be clearly defined

🛡️ Why This Document Exists

International banking transactions require absolute clarity on:

• Who controls the transaction

• Who has authority to proceed

• Who is entitled to fees

• Who the bank is permitted to communicate with

The Confirmation of Principal removes ambiguity and protects all parties by locking this information in writing.

✅ Key Benefits to the Client (Principal)

🔐 1. Confirms You Are the True Principal

The document formally confirms:

• You are the Principal Party in Interest

• No hidden or unauthorized intermediaries exist

• The bank is dealing directly with you

Benefit to you:
Your transaction cannot be hijacked, redirected, or misrepresented.

🏦 2. Protects Your Privacy

Because U.S. Capital Private Bank operates as a Private Bank and Trust:

• Your information is not disclosed to brokers or third parties

• Communications remain Principal-to-Principal or Bank-to-Bank

• Privacy laws and trust protections apply

Benefit to you:
Your identity, assets, and transaction details remain confidential.

📄 3. Eliminates Intermediary Confusion

The document confirms that:

• Any intermediary is acting only as an introducer

• There is no second Principal

• All future communication must involve the confirmed Principal

Benefit to you:
No disputes, no side claims, no competing instructions.

💰 4. Fee & Commission Transparency

If an intermediary is involved:

• Their fee structure is acknowledged in writing

• Fees are paid only upon successful closing

• No commissions are paid without your consent

Benefit to you:
You retain full control over costs and disbursements.

🧾 5. Clear Authority to Proceed

By signing the Confirmation of Principal:

• You authorize the bank to proceed

• You confirm readiness to engage in the transaction

• The bank can move forward without delay

Benefit to you:
Faster execution and fewer administrative hurdles.

🛡️ 6. Legal & Transactional Protection

The document:

• Creates a written record of authority

• Protects against misrepresentation

• Supports enforceability if disputes arise

Benefit to you:
Your position is clearly documented and defensible.

❗ What the Confirmation of Principal Is NOT

To avoid misunderstanding, this document is not:

• A promise of funding

• A guarantee of transaction success

• A securities offer

• A profit-sharing agreement

It is a confirmation and protection document, not an investment contract.

🧠 In Simple Terms

“The Confirmation of Principal makes it clear who is in charge of the transaction and ensures the bank is dealing with the right party, privately and securely.”

📌 When Is This Document Used?

The Confirmation of Principal is typically used:

• After an introduction is made

• Before sensitive bank communication begins

• Prior to issuing instruments or closing transactions

It works together with:

• The Smart Plan Agreement

• Bank-to-bank procedures

• RWA and SWIFT processes

📞 Questions or Assistance

If you need help understanding or completing this document, our team is available.

Email: [email protected]
Website: https://uscapitalprivatebank.com
Phone: +971 52 992 6005