Conflict of Interest Management Policy

Conflict of Interest Management Policy

Conflicts of interest shall be understood as all those circumstances that constitute or may give rise to a conflict with a possible detriment or loss of profit for a customer or customers or a profit for a Subject Person or for FELLOW FUNDERS.

Customer means both promoter and investor.

Under the current Conflict of Interest Policy, the following is understood as a Subject Person:

  1. The administrators, directors and senior executives of FELLOW FUNDERS.
  2. Employees and representatives of FELLOW FUNDERS, as well as any other natural person whose services are made available and under the control of FELLOW FUNDERS and who participates in the provision of FELLOW FUNDERS service.

Conflicts of interest may arise between:

  • The interests of FELLOW FUNDERS or Subject Persons and the obligations of FELLOW FUNDERS with regard to one or more customers; and
  • the interests of two or more customers of FELLOW FUNDERS with each other.

Subject Persons must know and comply with the provisions in FELLOW FUNDER’S current Conflict of Interest Management Policy, whose main objectives are:

  • The identification of potential conflicts of interest that may arise in the provision of services to customers by FELLOW FUNDERS before they happen; and
  • establishing means to manage the aforementioned conflicts of interest to avoid damage to FELLOW FUNDERS’ customers.

To identify conflicts of interest that may arise, it will be taken into account if FELLOW FUNDERS or the Subject Persons:

  • Can obtain a financial gain or avoid a financial loss at the customer's expense;
  • Have an interest in the result of the service rendered to the customer or operation carried out on their behalf, other than the interest of the customer.
  • Have financial or other incentives that lead them to recommend the services of an entity with a higher remuneration and not in response to the personal circumstances of the customers;
  • Carry out the same activity or business as the customer; and/or
  • Receive an incentive from a person other than the customer in relation to the service rendered to them in the form of money, goods or services, other than the standard commission or cost of the service.

Subject Persons may be subject to potential conflicts of interest by virtue of their family, economic or professional ties or for any other cause with regard to a specific action, service or operation.

For the purpose of this Conflict of Interest Policy:

  • a) the direct or indirect ownership of shares greater than 1% of the capital in companies will be considered as an economic tie;
  • b) a family tie is considered spouses or persons with whom they live in a spousal equivalent relationship, as well as relatives up to the second degree of consanguinity or family relationship; and
  • c) professional ties refer to any type of service provision relationship or other contractual links apart from those generated by their positions or jobs with FELLOW FUNDERS; the services provided or contractual links made by or through the persons in the aforementioned option will be considered as those of the Subject Person.

Subject Persons may not:

  • a) carry out activities that may give rise to a conflict of interest or misuse or improperly disclose Confidential Information, or
  • b) give personalised recommendations to investors about projects published on the participatory financing platform.

The following rules are to be considered in the resolution of conflicts of interest:

  1. In the event of a conflict between FELLOW FUNDERS and a customer, safeguarding their interest.
  2. In the event of a conflict between a Subject Person and FELLOW FUNDERS, it is the obligation of both to act honestly.
  3. In the event of a conflict between customers, avoid favouring any of them.

If there is any doubt about the remit or how to resolve the conflict, the FELLOW FUNDERS Internal Code of Conduct Control Body may be consulted.

Subject Persons must inform FELLOW FUNDERS’ Internal Code of Conduct Control Body of any situation in which a conflict of interest could arise regarding a specific action, service or operation. Communications must be made in the shortest possible time and, in any event, before making the decision that could be affected by the possible conflict of interest. Subject Persons must keep the above information up-to-date and report any modification or discontinuation of those situations.

The Control Body must update these regulations regarding conflicts of interest based on the experience of conflicts of interest that occurred.

Linked Projects

FELLOW FUNDERS, shall not have any participation in any crowdfunding offer on its crowdfunding platforms.

FELLOW FUNDERS shall not accept as project owners in relation to the crowdfunding services offered on their crowdfunding platform any of the following (a) their shareholders holding 20 %, or more, of share capital or voting rights (b) their managers or employees (c) any natural or legal person linked to those shareholders, managers or employees by control as defined in point (35)(b) of Article 4(1) of Directive 2014/65/EU.

To be informed about the persons that FELLOW FUNDERS accepts as investors in compliance with the Regulation (EU) 2020/1503 of The European Parliament and of The Council of 7 October 2020 on European crowdfunding service providers for business, and amending Regulation (EU) 2017/1129 and Directive (EU) 2019/1937 access to the following link.