Note (i) to Chapter 4 of the SRA Code of Conduct expressly recognises that a merger may give rise to a breach of confidentiality when information from two firms is merged. It is crucial to carry out a conflict check to ensure that clients of the two former firms do not have conflicting interests, as outlined in Chapter 3. Although anti-money laundering provisions must be adhered to, these applied equally to the individual firms prior to the merger, making option A less relevant. Option C is incorrect as the SRA Accounts Rules do not specifically address firm succession; client money remains the client's property, although possession will transfer to the merged practice. Clients must be kept informed about financial matters, but there is no specific requirement to provide details of rival firms, as mentioned in option D. Lastly, while financial risks associated with merging should be assessed, there is no immediate assumption that profitability will be negatively impacted, making option E incorrect at this stage. 

Key Point: The SRA Code of Conduct requires that solicitors assess and manage risks associated with mergers, particularly those relating to conflicts of interest and breaches of confidentiality. Compliance checks are essential to ensure adherence to professional standards and regulatory requirements.