VIOLET GEM sro Hedge fund asset management is subject to various regulations and restrictions to protect investors and ensure market integrity. Here are some common practices that are typically not permitted by hedge fund asset management firms:

1. **Insider Trading:** Hedge fund managers are prohibited from trading securities based on material, non-public information. This practice, known as insider trading, is illegal and can result in severe penalties, including fines and imprisonment.

2. **Market Manipulation:** Hedge fund managers are not allowed to engage in activities that manipulate market prices or create a false impression of supply or demand for a security. Market manipulation includes practices such as cornering the market, spoofing, and pump-and-dump schemes.

3. **Front-Running:** Front-running occurs when a hedge fund manager trades securities ahead of their clients' orders to benefit from the price movement resulting from the client's trade. This practice is unethical and can lead to conflicts of interest.

4. **Misrepresentation:** Hedge fund managers must provide accurate and transparent information to investors regarding the fund's investment strategies, risks, and performance. Misrepresenting or omitting material information can mislead investors and violate securities laws.

5. **Excessive Risk-Taking:** While hedge funds are known for taking calculated risks to generate returns, excessive risk-taking that endangers investor capital is not permitted. Hedge fund managers are expected to manage risk prudently and align their investment decisions with the fund's stated objectives and risk profile.

6. **Fraudulent Activities:** Hedge fund managers are prohibited from engaging in fraudulent activities, such as misappropriating investor funds, creating fictitious investments, or providing false performance reports. These activities are illegal and can lead to civil and criminal penalties.

7. **Conflict of Interest:** Hedge fund managers must disclose and manage potential conflicts of interest that may arise from their relationships with investors, service providers, or related parties. Engaging in activities that prioritize personal gain over the interests of investors is not permitted.

8. **Violating Regulatory Requirements:** Hedge fund asset management firms must comply with applicable securities laws and regulations in the jurisdictions where they operate. Violating regulatory requirements related to registration, reporting, disclosure, and other obligations can result in sanctions and enforcement actions by regulatory authorities.

It is important for hedge fund managers to adhere to ethical standards, regulatory requirements, and industry best practices to maintain investor trust, protect the firm's reputation, and uphold the integrity of the financial markets. Compliance with legal and ethical standards is essential for the long-term success and sustainability of hedge fund asset management businesses.

The European Securities and Markets Authority (ESMA) is the European Union authority responsible for promoting investor protection and ensuring the integrity, transparency, efficiency, and orderly functioning of securities markets in the EU. ESMA works to harmonize securities regulation across the EU member states. ESMA has guidelines and regulations that govern the marketing and distribution of financial products, including hedge funds, within the EU. These regulations are designed to ensure that investors are protected and that financial products are marketed in a fair and transparent manner. ESMA's guidelines may cover various aspects of marketing, including the content of marketing materials, the disclosure requirements for financial products, and the rules for targeting specific types of investors. ESMA may also provide guidance on the use of digital channels, such as websites and email marketing, for the promotion of financial products. It is important for hedge fund asset management companies operating in the EU to be aware of and comply with ESMA regulations related to marketing and solicitation of investments. These regulations may vary depending on the specific type of financial product being marketed and the target investor audience. For the most current and detailed information on ESMA regulations regarding marketing and solicitation of investments, VIOLET GEM sro recommends visiting the ESMA website or consulting with legal experts with expertise in EU financial regulations and practices.

Warning Clause to non-professional investors:

Disclaimer: The information published by VIOLET GEM sro, Hedge Fund Asset Management Company ("VIOLET GEM") is provided for educational informative purposes to guide interested parties in a friendly, professional manner. Neither the organization nor the publisher of the educational materials can be held liable for any eventual misleading unintentional information or misinterpreted misconduct whatsoever resulting from it. Individuals interested in investing are strongly advised to seek the counsel of a professional, such as a financial investment company, financial advisor or lawyer before making any financial decisions after reading the information for perusal. VIOLET GEM complies with ESMA regulations governing investments and financial solutions. All investment portfolios will be thoroughly evaluated by a team consisting of a lawyer, a tax specialist, and an auditor. Any relevant necessary reports will be submitted to the National Bank of the Czech Republic in accordance with regulatory requirements. All information presented on the VIOLET GEM sro website is intended for educational purposes and for perusal. No inducement or solicitation to engage in any particular investment activity is intended from the website published contents. In the event of potential financial interest in working with VIOLET GEM sro, based on the educational materials published, our team of professionals will ensure that all interested parties are informed in compliance with ESMA regulations and SEC rules. Please note that VIOLET GEM sro, works particularly mainly with professional investors, investing in financial markets carries risks, and individuals that are non-professional investors should conduct thorough research and seek professional advice before making any investment decisions. If necessary, our team can provide relevantly all necessary advice.

VIOLET GEM sro, herewith declares; that to our full knowledge and due-diligence research all of the origins of all the financial funds from all our dossiers and clients from our Hedge Fund Asset Management are crime-free and according to the United States Anti Money Laundering Act and the Related Crimes Free rules of the H.I.F.C.A. and according to the PATRIOT act, amended by the BSA Intelligence Reform & Terrorism Prevention Act 2024 legislative. All the financial funds are also according to the Financial Action Task Force on Money Laundering (FATF) of the International Monetary Fund (I.M.F.) act, according to the E.U. countries; European Anti-Money Laundering Directives (MLD4) + Ratified (MLD5). All origins of the funds are scrutinized and entirely reviewed and strictly measured verified, and controlled to be crime-free to our measurable knowledge and according to the highest standards of Anti-Money Laundering, (AML) + Anti Financial Crime (AFC), including Anti-Bribery and Corruption (ABC), Counter Terrorism Financing (CTF), Anti-Fraud and other punishable criminal acts.

AML PROCEDURES CERTIFICATION CLAUSE:

This is to certify that the foregoing text titled "A.M.L. Procedures Guarantees" has been reviewed and certified by VIOLET GEM sro as a true and accurate representation of the A.M.L. procedures and guarantees undertaken by VIOLET GEM sro.

VIOLET GEM sro, hereby declares and confirms that to the best of knowledge and belief, all the statements and assertions are always made in the aforementioned text regarding the origins of financial funds, compliance with the United States Anti Money Laundering Act, H.I.F.C.A. rules, PATRIOT Act, FATF guidelines, E.U. Anti-Money Laundering Directives, and other relevant regulations are accurate and truthful. Furthermore, VIOLET GEM sro affirms that all financial funds managed by VIOLET GEM sro through its Hedge Fund Asset Management services are always subject to thorough due diligence, scrutiny, and review to ensure compliance with the highest standards of Anti-Money Laundering (AML), Anti Financial Crime (AFC), Anti-Bribery and Corruption (ABC), Counter Terrorism Financing (CTF), Anti-Fraud, and other applicable laws and regulations.

VIOLET GEM sro attests that it always implements robust measures to prevent money laundering, terrorist financing, fraud, bribery, and other criminal activities within its operations, and that all efforts have been made to ensure that the financial funds managed by the company are free from illicit origins and criminal activities.

VIOLET GEM sro, the Hedge Fund / Asset Management Company, encourages and values collaboration with other reputable professional parties, and financial and fiscal advisors who are regulated, licensed, and well-recognized in their fields. We believe in the power of working together to carefully review each dossier with the assistance of these external experts. This collaborative approach allows us to build a diverse and skilled team of independent professionals, enabling us to provide top-tier financial consultancy services. Our ultimate aim is to support, educate, and guide our clients in alignment with regulatory requirements and legal obligations. It is our policy that for any potential financial involvement, each dossier is meticulously scrutinized in collaboration with outsourced relevant parties. By engaging in this practice, we assemble a highly professional team comprising various independent skilled professionals, ensuring the delivery of best-practice financial consultancy services. Our primary goal is to assist, educate, and support everyone, always in strict adherence to regulations and legislative obligations.