Donohue Pens Third Installment in Conflicts of Interest Series

In the third installment of MFDF Chair Buddy Donohue’s conflicts of interest series, featured in Fund Board Views, attorney conflicts of interest are addressed.  This may be one of the least obvious areas of conflicts for registered fund directors to consider, but attorneys serving the fund industry may have conflicts in a variety of areas, particularly when they represent multiple clients across funds, advisers, boards or service providers.  Directors can identify if any of these conflicts exist by understanding who the attorney represents, what services are being provided and how any identified conflicts are being managed.  Donohue notes that the ABA Model Rules provide a helpful framework for addressing conflicts through informed written consents and prohibitions on representation in certain circumstances.  He notes that outside counsel can also assist to resolve attorney conflicts.  Fund directors greatly benefit from counsel that operates independently, and operational diligence to address and mitigate conflicts can preserve this function.

Click here to read Buddy Donohue’s Fund Board Views article about conflicts of interest relating to attorneys.