Selection and rating policy of Vivienne Investissement’s financial intermediaries
This document outlines the selection and rating process of the financial intermediaries required by Vivienne Investissement to execute the trades within the frame of Ucits management and managed account activity.
It complies with the provisions described in article 65(6) of the “Règlement Délégué” MIF2.
The rating and the selection of the financial intermediaries are made every six months during an Evaluation Committee of the financial intermediaries, by the whole Managing Directors of the company and the Compliance and Internal Control Officer.
The ranking and the ratings are analysed during the Evaluation Committee which decides upon the list of financial intermediaries with whom Vivienne Investissement would like to deal.
Taking into account the constraints of “best execution”, the financial intermediaries are selected on the basis of the following criteria:
- Total cost (cost of the financial instrument + transaction fees)
Incidentally on:
- Notoriety and strength of the company,
- Quality of the order execution,
- Quality of the back office (and possibly automated tools meant for trading),
- Operations confidentiality.
Vivienne Investissement gives importance to the fact that the relationship established with the financial intermediary shall be based on confidence (in the information given, the operations being processed…).
Vivienne Investissement has created a scorecard of the financial intermediaries according to the evaluation criteria predefined during the Evaluation Committee. Thus, this scorecard allows to have an exhaustive vision of the management company’s expectations towards its financial intermediaries and the quality of the services provided by these latters. A scoring system from 1 to 5 enables to score and qualify this provided service. The Evaluation Committee of the financial intermediaries hires then the best financial intermediaries with regard to the obtained rating.
Prevention policy and management of the interest conflicts
Pursuant to articles 313-18 to 313-22 of the “Règlement Général” of the AMF (the French Financial Markets Authority) and to L. 533-10 of the French “Code Monétaire et Financier” (Monetary and Financial Code), this document is aimed at informing our clients about the policies implemented to prevent from and deal with the possible interest conflicts to which the employees, the people in relation and the company might have to face.
ACTIVITIES AND PERSONS CONCERNED
Vivienne Investissement operates in:
- Collective management (Ucits and Alternative Investment Fund),
- Portfolio management on behalf of third-parties,
- Advisory management (within the frame of the managed Ucits distribution),
The persons concerned by the risks of conflicts of interest are the following:
- The Directors of Vivienne Investissement,
- The Managers,
- Vivienne Investissement’s employees,
- The shareholders,
- The external providers to whom the essential functions are delegated (custodian, auditor, law firm…),
- The intermediaries,
- The investors.
LIST OF THE CONFLICTS OF INTEREST LINKED TO VIVIENNE INVESTISSEMENT’S ACTIVITY
The potential situations which might lead to a conflict of interest are the following:
- Situations relative to the grant or acceptation of advantages or gifts:
- Risk that the Manager/Directors do not select the best broker, auditor, business provider or distributor, to the detriment of the primacy of the client’s interest,
- Risk that the Auditor, the Depository Control or the Compliance and Internal Control Officer closes eyes on anomalies,
- Risk that the valuer accepts to manipulate the Ucit valuation under the influence of the Manager,
- Risk of a dissemination/use of confidential, unequal or biased information.
- Situations relative to the conditions of the variable fees of the management company
- Risk of a bad Ucits management (high turnover, risk taking in the investments or disinvestment, etc.).
- Situations relative to the existence of privileged relationships:
- Risk of choosing or giving advantage to a provider above the primacy of the client’s interest.
- Situations relative to the simultaneous exercise of functions with conflicting interests (Ucits management in conjunction with the management of his own accounts by the same manager, subscription in the funds managed by the persons concerned):
- Risk that the Manager shall favour one client or one Ucit to the detriment of the others.
- Situations regarding the access to privileged information:
- Risk that a provider will use privileged information to the detriment of the management company’s clients.
- Situations relative to the financial dependence within the frame of a contractual relationship:
- Risk of a bad selection (the Manager does not choose the best broker, auditor, business provider or distributor) above the primacy of the client’s interest.
PROCEDURE OF PREVENTION AND MANAGEMENT OF THE CONFLICTS OF INTEREST AND INFORMATION POLICY OF THE CLIENTS
Respect of the existing provisions of the Code of Conduct
Vivienne Investissement’s Code of Conduct is signed by all the employees. The known or envisaged potential cases of regulation infringement regarding an employee or the company itself are mentioned in this Code.
In particular, each one undertakes to respect under any circumstances the primacy of the investors’ interest.
The Code of Conduct lists the rules of good conduct and the fundamental principles of ethics and deals with the following topics regarding the prevention of the conflicts of interest:
- Dispositions applicable to the members of the management company:
- Remuneration policy,
- Gifts and benefits of all kinds policy,
- Advisory activities,
- Independence rule,
- Professional secret,
- Privileged information,
- Insider trading,
- Definition of the sensitive people,
- Other functions (mandates held outside),
- Personal transactions,
- List of the securities under supervision.
- Relationships with third parties
- Rules applicable to the management company:
- Own funds management
- Information to the securities holders
When we consider that the conflict of interest cannot be solved, we can decline the client’s request and refrain from action on behalf of this latter so as to protect his interests.
Respect of the existing operational procedures
The whole existing procedures have to be respected by all Vivienne Investissement’s employees.
They enable to limit the risks of conflicts of interest regarding in particular the potential situations linked to the Ucits management, the mandated management activity and the contractual relationships with third parties.
Particular provisions applicable to the collective management
Pursuant to the “Règlement Général” of the AMF (the French Financial Markets Authority), the following provisions are taken within Vivienne Investissement:
- No manager can be in charge of the own portfolio management of the sponsor company or the Ucit custodian (the Code of Conduct deals with the own fund management of the management company). Given the present structure of the company and the small employees’ number, the management of Vivienne Investissement’s own funds is ensured by the President. These operations are subject to controls by the Compliance and Internal Control Officer.
- A physical person, manager, employee or made available to the portfolio management company, can only in this capacity and on behalf of this latter, provide with remunerated advisory services, companies whose assets are held in the managed portfolios or whose acquisition is planned, whatever the payment of these services is either due by the involved company or by the managed portfolio.
- If necessary, the fund annual report lists the other funds managed by the management company.
Information policy of the shareholders and constituents
The present procedure is available and will be provided to any shareholders who will request it.
Furthermore, pursuant to the regulation, any situations of conflicts of interest established and subject to seriously jeopardize the interests of the clients shall be subject to information per letter to the involved Ucits shareholders and the constituents.
This information shall be recorded in the register of the conflicts of interest.
IMPLEMENTATION OF A REGISTER OF CONFLICTS OF INTEREST
Pursuant to article 313-22 of the “Règlement Général” of the AMF (the French Financial Markets Authority), the company fills in a register of the conflicts of interest. This register records the sensitive risks affecting the interests of one or several clients which have occurred.
Remuneration policy
The management company defines and applies a remuneration policy which is consistent with an efficient management of its risks and does not foster an excessive risk taking.
This policy aims at ensuring a consistency between the behaviour of the professionals who are employed and the long-term objectives of the management company, and in particular deterring them to take risks considered excessive and unacceptable by the company. The performance measurement used to calculate the variable remuneration components, when applicable, shall integrate an adjustment process including all the common and relevant future risks.
As part of the risk control, the management company shall take measures so as to reduce significantly the amount of the variable remunerations granted for the exercise during which losses would be noticed.
The remuneration policy is defined by the General Management and its general principles are submitted to the Board of Directors. The remuneration of the managers, sales and Compliance and Legal Officer of Vivienne Investissement is fixed and may include a variable component in the form of a discretionary bonus, when the economic conditions allow it. This variable remuneration is linked neither to the Ucits management, nor to their performance. The company ensures that the compensation policy does not affect both the risk profiles of Ucits and the risks in terms of sustainability, and enable to cover the whole conflicts of interest linked to their financial management.
Foreign Account Tax Compliance Act (FATCA)
The information available on this website are directed only to citizens / residents of the countries in which the Funds are authorized for distribution, as well asto institutional investors. Persons not qualifying as investors in/from these countries or as institutional investors are invited to leave the website. The Funds are not sold or offered in the United States of America, its territories or possessions or to any “US person” as defined by Regulation S of the US Securities Act of 1933, as amended.
Information on the social, environmental and governance criteria (ESG)
According to the article L. 533-22-1 of the French “Code Monétaire et Financier” (Monetary and Financial Code), specified by the article D. 533-16-1, the management company must inform the investors on how the social, environmental and governance criteria (ESG) are taken into account within the management process implemented by Vivienne Investissement.
The management company does not currently take into account the social, environmental and governance criteria (ESG) in its management process. Its Ucits and managed accounts are invested only in futures on indices and government bonds which do not allow to set up an ESG policy for the moment. This decision was made by the Executive Management. The management company is not, however, closed to the implementation of an ESG policy in the future should the investment vehicles were to evolve. A reflection about this possibility is currently underway.
Claim processing
A claim corresponds to a request which cannot be considered as a simple information request.
In case of a claim, write to:
Vivienne Investissement
6, quai Jules-Courmont
69002 LYON – FRANCE
An acknowledgement of receipt will be sent within ten working days after the reception of the claim. An answer will be provided within two months following the claim receipt, except when duly justified special circumstances occur.
In the case where the answer might not be satisfying, it is possible to alert the mediator of the AMF (the French Financial Markets Authority):
Médiateur de l’AMF
Autorité des marchés financiers
17, place de la Bourse
75082 PARIS CEDEX 02 – FRANCE
Or by an electronic form available on the website of the AMF, www.amf-france.org / le médiateur.
There is a mediation charter also available on the website of the AMF: www.amf-france.org
