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Case Studies
Personal interest prevailing
Jackson is a corporate financier. On one occasion, he leads a team to arrange the takeover of Good Industrial by Frontline Group through the acquisition of 50% of its shares. Although Jackson is holding a substantial quantity of stocks of Good Industrial, he does not disclose the situation to his company. Finally, Jackson makes handsome gains from his own Good Industrial’s stocks due to the success of the takeover.
Case Analysis
Jackson breaks the *Codes of Conduct by concealing his personal interest in Good Industrial and continuing to participate in the takeover project. It appears that his advice to Frontline Group is not entirely objective as his interest in Good Industrial may affect his judgement. To comply with the standard, Jackson should disclose the situation to his company and let his employer decide whether he should withdraw from the project.
*Remarks: Codes of Conduct refer to the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission, the Code of Conduct for Corporate Finance Adviser and the Fund Manager Code of Conduct.