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By Dr. Michael DAEMGEN, Partner – Arendt Regulatory Consulting Gaëlle SCHNEIDER, Partner – Arendt Medernach
Conflicts of interest (CoI) are unavoidable in fund management. As fund managers are entrusted with other people’s money, even the perception of a conflict can damage investor confidence and the reputation of the firm. Managing conflicts of interest is therefore not only a regulatory obligation, but also a matter of fiduciary integrity and long-term trust. The Commission de surveillance du secteur financier (CSSF), European Securities and Markets Authority (ESMA), and other regulators have made CoI a supervisory priority.
The definition of a relevant CoI and the resulting legal consequences vary depending on the legal...
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