n NISM Certifications
X NISM Series X
Medium

An AIF investment manager having outside interests unrelated to the fund’s interests could create a conflict of interest, which must be disclosed and managed appropriately.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. It amounts to a conflict of interest

    Correct answer

  2. B

    Routine governance practice

  3. C

    Arm’s length policy

  4. D

    Regular compliance

Why this is the answer

Outside interests conflicting with the fund’s interests should be disclosed and managed to prevent adverse impacts.

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