EuVECA – Stricter Conflict of Interest Regulation
On 22 May 2019, the EU Commission published a delegated regulation supplementing the already effective EuVECA regulation, imposing stricter requirements on EuVECA fund-managers’ handling of conflicts of interest. To enable EuVECA managers to adapt to the new requirements, the date of application of the delegated regulation is deferred by six months to 22 November.
The regulation contains a list of typical conflicts of interest-situations that may occur and which EuVECA managers must regard when managing their funds.
Following the regulation, EuVECA managers must prepare a conflict of interest policy “appropriate to the size and organisational structure of that manager given the nature, scale and complexity of its business”. The policy must contain an identification of conflicts of interest-situations relevant to the manager, and the manager must consider the list of examples in the regulation. Furthermore, the policy must specify how the manager intend to handle such situations and moreover, the escalation procedure if it becomes necessary to resolve issues at a higher level in the organisation.
Sweden is an EU member and regulations becomes law upon publication without any room for changes.
Norway has yet to implement EuVECA but it is expected that the regulation which allows venture capital fund managers (or SMB-managers really) for a lighter regulatory regime will be implemented relatively soon.
Link to Delegated Regulation (EU) 2019/820 of 4 February 2019 HERE.
Stockholm, 21 June 2019
Espen Størseth Iversen, email@example.com