Commission Directive 2006/73/EC Article 21: (Articles 13(3) and 18 of Directive 2004/39/EC) Conflicts of interest potentially detrimental to a client

Article 21 - (Articles 13(3) and 18 of Directive 2004/39/EC) Conflicts of interest potentially detrimental to a client

Article 21

(Articles 13(3) and 18 of Directive 2004/39/EC) Conflicts of interest potentially detrimental to a client

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Member States shall ensure that, for the purposes of identifying the types of conflict of interest that arise in the course of providing investment and ancillary services or a combination thereof and whose existence may damage the interests of a client, investment firms take into account, by way of minimum criteria, the question of whether the investment firm or a relevant person, or a person directly or indirectly linked by control to the firm, is in any of the following situations, whether as a result of providing investment or ancillary services or investment activities or otherwise:

((a))

the firm or that person is likely to make a financial gain, or avoid a financial loss, at the expense of the client;

((b))

the firm or that person has an interest in the outcome of a service provided to the client or of a transaction carried out on behalf of the client, which is distinct from the client's interest in that outcome;

((c))

the firm or that person has a financial or other incentive to favour the interest of another client or group of clients over the interests of the client;

((d))

the firm or that person carries on the same business as the client;

((e))

the firm or that person receives or will receive from a person other than the client an inducement in relation to a service provided to the client, in the form of monies, goods or services, other than the standard commission or fee for that service.