4.) Which of the following would be most effective to prevent any violation of the Asset
Manager Code of Professional Conduct as reflected in Akinyi's Recommendation 3?
A. The Fund does not participate in any of V2020's private placements.
B. V2020 discloses to all clients the relationship between V2020 and the Fund.
C. The Fund only retains a minority shareholding in V2020.
Answer = B
"Asset Manager Code of Professional Conduct," Kurt Schacht, Jonathan J. Stokes, and
Glenn Doggett
Section A: Loyalty to Clients; Section F: Disclosures
The Fund would comply with the Asset Manager Code if it made full disclosure to all of
its clients regarding the relationship between the Fund and V2020's activities (the
investment banking/corporate finance activities). Both parties should disclose any
common ownership, even minority positions. If some of the private placements met the
investment objectives of the Fund, it would harm the Fund's clients if the Fund was not
able to invest in those private placements because of the potential conflict of interests.
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