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🔗 Back to Summary. 🇫🇷 French Version: 2025R1142_FR.6. Back to Summary of LVL1. Open the PDF. Direct link to EUR-LEX.
Article 5 – Policies and procedures on conflict of interest in the context of remuneration ⬅️ | ➡️ 1114
Références LVL1 <=> LVL2
Level 1 reference(s): 2023R1114_EN.72 > 5
Article 6 - Policies and procedures on conflicts of interest in the context of personal transactions
1.
Conflict of interest policies and procedures shall ensure that transactions resulting in a position in or exposure to a crypto-asset effected by or on behalf of a connected person are subject to close scrutiny and monitoring where at least one of the following criteria are met:
(a)
the connected person is acting outside the scope of the activities that the connected person carries out in its professional capacity;
(b)
the transaction is carried out for the account of any of the following persons:
(i)
the connected person;
(ii)
any person with whom a connected person has a family relationship or close links as referred to in Article 3(1), point (31), of Regulation (EU) 2023/1114;
(iii)
a person from whom the connected person can expect to obtain a direct or indirect material advantage linked to the outcome of the transaction, other than a fee or a commission for the execution of the transaction.
For the purposes of the first subparagraph, point (b)(ii), person with whom a connected person has a family relationship shall mean any of the following:
(a)
the spouse of the connected person or any partner of that person considered by national law as equivalent to a spouse;
(b)
a dependent child or stepchild of the connected person;
(c)
any other relative of the connected person who has shared the same household as that person for at least 1 year during the 5 years preceding the date of the personal transaction concerned.
2.
In relation to the transactions referred to in paragraph 1, the policies and procedures shall ensure that:
(a)
with respect to the decision to execute such transactions:
(i)
such transactions are identified by or notified to the person responsible for the management of conflicts of interest before a decision on the execution of the transaction and its conditions is taken and that such transactions are documented;
(ii)
decisions to enter into such transactions are taken objectively, in the interest of each party;
(iii)
the conditions for the transaction are equivalent to the conditions that would have applied between independent parties for the same transactions in the absence of a conflict of interest.
(b)
decision-making processes for entering into those transactions are set out and that thresholds, expressed as the volume of the transaction, above which such a transaction requires the approval by the management body are established;
(c)
employees and members of the management body are aware of the rules applied on those transactions, and of the measures established by the crypto-asset service provider in relation to them;
(d)
the crypto-asset service provider is informed promptly of any of those transactions;
(e)
a record is kept of the transaction identified or notified to the crypto-asset service provider, specifying the date and time of the transaction, the conditions, its volume, the counterparty and any authorisation or prohibition in connection with that transaction.