Home » Members » Code of Conduct
Adopted by the Board of Directors
May 18, 2005
Introduction
The Emerging Markets Private Equity Association (“EMPEA”) was formed in 2004 to support the development of the emerging markets private equity industry.
Objectives of EMPEA
EMPEA is a not-for-profit corporation established to pursue the following objectives:
- promote the recognition of emerging markets private equity as an asset class and as a professionally managed sector of the global investment community which is worthy of support by investors.
- provide for the examination and discussion of the management of private equity in emerging markets.
- promote fellowship and provide a forum for the exchange of ideas and views among Members among the business community at large.
- assist Members to develop their skills and remain up to date on policy, legal, tax, accounting, and other issues relating to emerging markets private equity investments.
- collect and distribute information with respect to emerging markets private equity investment and funds management.
- represent the interests and views of Members with the appropriate governments, commissions, regulatory authorities, institutions, industry associations and professionals.
Membership of EMPEA
The following entities or individuals are eligible to be admitted as members of EMPEA (“Members”), in accordance with the Certificate of Incorporation and Bylaws:
- any entity of appropriate standing and experience whose business, in the opinion of the Board of Directors of EMPEA (“Board”), includes the management of funds for investment in the equity of companies in emerging markets for the primary purpose of achieving long-term capital gains (“Investment Managers”).
- any entity or individual of appropriate standing and experience whose business, in the opinion of the Board, includes investment in private equity funds investing in emerging markets.
- any entity or individual who is engaged in a profession or trade which, in the opinion of the Board, provides services to the emerging markets private equity industry, including, but not limited to, lawyers, accountants, consultants and banker.
- any entity or individual who, in the opinion of the Board, is a fit and proper person to be a member and will enhance EMPEA.
Code of Conduct
The following Code of Conduct establishes a minimum set of principles, compliance with which is mandatory for all Members and their directors, managers, employees, representatives and nominees.
Integrity
- Members shall promote and maintain ethical standards of conduct and at all times deal fairly and honestly with each other and with companies seeking private equity.
- Members shall conduct their business in a professional way and shall not engage in practices that may be damaging to the image or interests of EMPEA or to the emerging markets private equity industry.
- Members shall not malign, defame or unfairly criticize any other Member.
- Members shall neither take improper advantage of their position in EMPEA nor abuse any confidential information addressed to EMPEA.
- Members shall abide by the EMPEA Code of Conduct and any other standards issued by the Board or a Committee of the Board.
Regulatory
- Members shall take adequate steps to ensure that they comply with all relevant regulatory requirements including, but not limited to, the establishment and documentation of proper procedures, maintenance and retention of full and complete business records, and disclosure of any conflicts of interest.
- Members shall deal with regulators in an open and co-operative manner and keep them informed of relevant matters concerning their activities.
Investor Relationships
- Investment Managers shall be accountable to their investors and keep their investors fully and regularly informed, including, but not limited to, the provision of regular operating and financial reports.
- Investment Managers shall not accept into their funds subscribed capital from unspecified sources.
- Investment Managers who sponsor investment syndications with other parties, whether members of EMPEA or not, shall operate on the basis of full disclosure to such other parties.
- Investment Managers shall not use a private equity fund to promote their own interests or the interests of their directors, managers, employees, representatives and nominees, except insofar as they benefit from the success of such fund according to established compensation and profit-sharing contracts.
Portfolio Company Relationships
- Investment Managers acknowledge that their primary business concern is developing the strength of the portfolio companies in which they have invested, which will result in the funds under management making long-term capital gains.
- Investment Managers shall declare to any portfolio company in which they have invested any conflicts of interest that may arise.
- Investment Managers shall respect confidential information supplied to them by companies seeking private equity or by portfolio companies in which they have invested.
Performance Measurement and Reporting
- Investment Managers shall adopt standards for measuring and reporting investment performance that conform with widely accepted industry guidelines.