Policies and procedures on conflicts of interest in the context of personal transactions
Article 6
1. Conflict of interest policies and procedures shall ensure that transactions resulting in a position in or exposure to a crypto-asset effected by or on behalf of a connected person are subject to close scrutiny and monitoring where at least one of the following criteria are met: (a) the connected person is acting outside the scope of the activities that the connected person carries out in its professional capacity; (b) the transaction is carried out for the account of any of the following persons: (i) the connected person; (ii) any person with whom a connected person has a family relationship or close links as referred to in Article 3(1), point (31), of Regulation (EU) 2023/1114; (iii) a person from whom the connected person can expect to obtain a direct or indirect material advantage linked to the outcome of the transaction, other than a fee or a commission for the execution of the transaction. For the purposes of the first subparagraph, point (b)(ii), person with whom a connected person has a family relationship shall mean any of the following: (a) the spouse of the connected person or any partner of that person considered by national law as equivalent to a spouse; (b) a dependent child or stepchild of the connected person; (c) any other relative of the connected person who has shared the same household as that person for at least 1 year during the 5 years preceding the date of the personal transaction concerned. 2. In relation to the transactions referred to in paragraph 1, the policies and procedures shall ensure that: (a) with respect to the decision to execute such transactions: (i) such transactions are identified by or notified to the person responsible for the management of conflicts of interest before a decision on the execution of the transaction and its conditions is taken and that such transactions are documented; (ii) decisions to enter into such transactions are taken objectively, in the interest of each party; (iii) the conditions for the transaction are equivalent to the conditions that would have applied between independent parties for the same transactions in the absence of a conflict of interest. (b) decision-making processes for entering into those transactions are set out and that thresholds, expressed as the volume of the transaction, above which such a transaction requires the approval by the management body are established; (c) employees and members of the management body are aware of the rules applied on those transactions, and of the measures established by the crypto-asset service provider in relation to them; (d) the crypto-asset service provider is informed promptly of any of those transactions; (e) a record is kept of the transaction identified or notified to the crypto-asset service provider, specifying the date and time of the transaction, the conditions, its volume, the counterparty and any authorisation or prohibition in connection with that transaction.