Pursuant to current law derived from the Markets in Financial Instruments Directive (MiFI Directive) and the Commission’s Delegated regulation (EU) N°231/2013 dated December 19th, 2012 and the AMF General Rules, FONDINVEST CAPITAL has and maintains a policy on conflict of interest management and implements specific organizational (means and processes) and control provisions in order to prevent, identify and manage situations of conflict of interest which could be harmful to interests.
A conflict of interest is defined as a situation in which one must choose between:
- one the one hand, the interests of the management company and their own interests and, on the other hand, the client’s interests;
- between the interests of two different clients.
Preventing conflicts of interest requires the training of all of FONDINVEST CAPITAL’s staff on the internal and market rules and best practices, and by the implementation of strict processes:
- Internal control mechanism
FONDINVEST CAPITAL’s compliance and internal control officer (Responsable de la Conformité et du Contrôle Interne, or RCCI) oversees the respect of rules and processes.
- Ethics mechanism
All FONDINVEST CAPITAL employees must respect a Code of Ethics which seeks to guarantee the respect of the primacy of client interests and conflict of interest prevention guidelines. Each employee is obliged to behave loyally and act equitably in the interest of clients while respecting principles of integrity, transparency, and market security.
- Personal transaction, external mandates and gift oversight mechanism
FONDINVEST employees are subject to limitations and to oversight on their personal operations, their external mandates and the gifts they make or receive from clients, suppliers or partners.
- Compensation limitations
FONDINVEST CAPITAL has implemented a mechanism for the identification and classification of the benefits and compensation it receives and remits in order to remain within the bounds of applicable provisions.
FONDINVEST CAPITAL has also implemented a staff compensation policy that meets the provisions of the AIFM directive
Identification of conflicts of interest
An annual review of activity seeking to detect conflicts of interest that could potentially harm client interests is carried out through a mapping of the conflict-of-interest risks. This mapping specifies the types of activity for which a conflict of interest may occur and lists the systems and procedures put in place to prevent any risk of such a conflict arising.
Conflict of interest management
Pursuant to applicable regulation, the RCCI keeps a registry in which are recorded, as required, the types of investment or related services provided, and FONDINVEST CAPITAL’s other activities conducted in its own name in which a conflict of interest has occurred. A note explaining the context and how this conflict was managed is systematically drafted.
Finally, if FONDINVEST CAPITAL realizes that efforts made are insufficient to guarantee with reasonable certainty that the clients’ interests will not be harmed, the company shall write to these clients specifying the nature of the conflict or its source so client can make an informed decision.