Steps to prevent, identify and manage conflicts of interest
Article 2
1. The steps that crowdfunding service providers are required to take in accordance with Article 8(4) of Regulation (EU) 2020/1503 shall aim at ensuring with reasonable confidence that risks of damage to client interests will be prevented, and, where that is not possible, appropriately mitigated. 2. For the purposes of identifying the types of conflict of interest that arise while providing crowdfunding services and whose existence may damage the interests of a client, in addition to the types of conflicts of interests referred to in Article 8(2), first subparagraph, of Regulation (EU) 2020/1503, crowdfunding service providers shall take into account, as a minimum, whether any of the persons referred to in Article 8(4) of that Regulation: (a) is likely to make a financial gain, or avoid a financial loss, at the expense of the client; (b) has an interest in the outcome of a service provided to the client which is distinct from the client’s interest in that outcome; (c) has a financial or other incentive to favour the interest of a client or group of clients over the interests of another client.