S.L. 370.32 Art. 30Conflicts of interest.

(1) In order to avoid conflicts of interest between the depositary, the AIFM and, or the AIF and, or its investors:

(a) the AIFM shall not be licensed to act as depositary;

(b) a prime broker acting as counterparty to an AIF shall not act as depositary for that AIF unless it has functionally and hierarchically separated the performance of its functions as depositary from its tasks as prime broker and the potential conflicts of interest are properly identified, managed, monitored and disclosed to the investors of the AIF: Provided that delegation by the depositary to such prime broker of its custody tasks in accordance with regulation 34 is allowed if the relevant conditions are met; and

(c) the depositary shall not be appointed as external valuer of the AIF, unless it has functionally and hierarchically separated the performance of its functions as depositary from its tasks as external valuer and the potential conflicts of interest are properly identified, managed, monitored and disclosed to the investors of the AIF.

(2) In the context of their respective roles, the depositary and the AIFM shall act honestly, fairly, professional, independently and in the interests of the AIF and the investors of the AIF.

(3) The depositary shall not carry out any activities with regard to the AIF or the AIFM on behalf of the AIF that may create conflicts of interest between the AIF, the investors in the AIF, the AIFM and itself, unless the depositary has functionally and hierarchically separated its tasks as depositary from its other potentially conflicting tasks and the potential conflicts of interest are properly identified, managed, monitored and disclosed to the investors of the AIF.