Feri Trust (Luxembourg) S.A. (hereinafter referred to as ‘FTL’) is committed to avoiding any conflict of interest that might arise within the meaning of
Conflicts of interest arise when several persons have an interest in the legitimate realisation of certain business opportunities, or the business opportunity of one person is dependent on the specific decision of another person. Insofar as it is not possible to avoid conflicts of interest, FTL conducts its business in a manner that ensures the proper management of conflicts of interest.
FTL will make organisational arrangements and take administrative steps to implement all measures necessary to identify, prevent, resolve and monitor conflicts of interest. To this end, the FTL Board has adopted these guidelines which specify the detailed requirements.
These guidelines apply to all departments and employees of FTL, to their clients and to funds managed by FTL, as well as to Relevant Persons within the meaning of the following definitions. In such cases where activities are outsourced, FTL will ensure that appropriate arrangements are put in place by the service provider. Compliance with applicable laws in connection with policies, prohibitions and obligations arising from FTL guidelines shall be binding for all employees and Relevant Persons.
This policy on conflict of interest is an integral part of the comprehensive compliance management of FTL.
‘Investors’ within the meaning of the policy on conflict of interest are:
‘Clients’ for the purposes of this policy are all clients of FTL.
‘Relevant Persons’ are members of the FTL Board and all staff of FTL or of any outsourcing company appointed by FTL, as well as any other natural or legal person who, under an agreement for the transfer of responsibilities to third parties, is directly involved in the provision of services which enable FTL to manage funds.
This policy on conflicts of interest applies to all conflicts of interest that may result in a risk of damage or loss to the investors in a fund managed by the FTL. Such conflicts of interest may arise in connection with the management of funds in the following combinations or legal relationships:
A conflict of interest for FTL or for an external provider working on its behalf and/or a Relevant Person in the management of the Fund is particularly indicated if the following circumstances arise with regard to FTL and/or a Relevant Person:
To prevent the possibility of conflicts of interest, FTL or an external provider working on its behalf or a Relevant Person must undertake to comply with the highest standards. These include acting in a lawful and professional manner at all times as well as upholding general market rules, whereby the interests of investors are always taken into account. Appropriate organisational arrangements and administrative measures to avoid conflicts of interest are to be put in place, applying the principle of proportionality in relation to the size and structure of FTL and the nature, scope and complexity of its business.
Precautionary measures to be taken for the prevention of conflicts of interest must be reasonable and effective. In particular, steps must be taken to ensure that any persons concerned are familiar with and adept in any procedures that are necessary for the proper discharge of their duties. For this purpose, process descriptions and work instructions are to be drawn up and training carried out. In this context, documentation must be kept, describing functions, reporting and responsibilities.
To avoid conflicts of interest, steps must be taken to ensure that FTL or an external provider working on its behalf, a Relevant Person or an employee authorised by FTL conduct their activities independently and are mindful of potential risks to the fund and its investors and to clients. To ensure the independence of FTL and of Relevant Persons, the following organisational precautions were put in place:
To avoid conflicts of interest, the Executive Board of FTL and/or an external provider working on its behalf has taken the following administrative measures with regard to monitoring and training for Relevant Persons and staff acting for FTL:
Regular training is provided for all affected employees at FTL and/or certification of training having been carried out at an external provider working on its behalf or of Relevant Persons at FTL.
The Executive Board of FTL has appointed one of its members to oversee the prevention of conflicts of interest (hereinafter ‘Conflict of Interest Officer’). The Conflict of Interest Officer is the member of the Board at FTL responsible for compliance. The Conflict of Interest Officer is responsible for the ongoing investigation, prevention, resolution and/or the management and monitoring of conflicts of interest.
The Conflict of Interest Officer reports directly to the Board on a regular basis concerning the performance of his/her duties.
It is the responsibility of the Conflict of Interest Officer to ensure that the parties affected by FTL conflict of interest management are always informed about and receive regular training on these guidelines.
Furthermore, it is his/her responsibility to monitor compliance with these conflict of interest management guidelines on a regular basis.
If a conflict of interest has been identified, the Conflict of Interest Officer shall inform the FTL Board of the nature and extent of the conflict of interest and document this accordingly.
If a conflict of interest has been identified, as defined by the conflict of interest management guidelines, this is to be dealt with immediately and in an equitable manner.
The assessment of a potential conflict of interest is a two-step process: stage one is managed by the Conflict of Interest Officer; if the issue cannot be resolved, it is escalated to stage two, at which point the FTL Board or its Board of Supervisors become involved.
If it should become apparent during an attempt to resolve a conflict of interest that existing and ongoing measures are not appropriate or sufficient, additional measures must be taken, such as:
FTL is obliged to inform investors of conflicts of interest as soon as it becomes apparent that the organisational measures taken by FTL to identify, prevent, resolve and monitor conflicts of interest are not sufficient to ensure with reasonable confidence that any risk of damage or loss to the interests of investors and/or managed funds has been avoided. The rules on disclosure also apply to potential conflicts of interest that may arise in connection with the delegation/outsourcing or sub-delegation of two specific business areas, namely Portfolio and/or Risk Management. Furthermore, disclosure must be made of any transactions conducted by employees and Relevant Persons in connection with the managed funds.
The duty to disclose non-resolvable conflicts of interest at FTL includes informing investors prior to the execution of the relevant businesses measure about the general nature and the sources of conflicts of interest and developing appropriate strategies and procedures.
Disclosure of potential or actual conflicts of interest may be made by means of a durable medium or, for example, publication on the website of FTL.
Insofar as disclosure of conflicts of interest is effected on the FTL website, FTL is to ensure the implementation and application of the following measures: