A Commission Delegated Regulation on conflicts of interest arising in relation to European venture capital funds has been published in the Official Journal of the European Union. The Delegated Regulation sets out the parameters for conflicts of interest policies, which must be introduced by venture capital funds within scope of the European Venture Capital Regulation. The Delegated Regulation will enter into force on June 11, 2019 and will become directly applicable in all EU Member States on December 11, 2019.

The European Venture Capital Regulation governs the operation of European venture capital funds that fall within the Regulation's definition of a "qualifying venture capital fund". Its provisions include requirements imposed on managers of qualifying venture capital funds to identify and avoid conflicts of interest that may arise in the course of their work. The newly published Delegated Regulation specifies the relevant types of conflicts of interest, including the making of a financial gain or avoidance of a financial loss by a manager at the expense of the fund, managers' interests in services provided to or transactions entered into with a fund that are distinct from the interests of the fund itself and the receipt of fees, commissions or non-monetary benefits that fall outside defined parameters. The Delegated Regulation also sets out requirements around the conflicts of interest policy to be put in place by the managers of such funds, as well as the minimum measures required to prevent such conflicts arising and how to manage the consequences if a conflict does arise.

View the Delegated Regulation.

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