Article 7

Managers of qualifying venture capital funds shall, in relation to the qualifying venture capital funds they manage:

1. (a)

   act honestly, fairly and with due skill, care and diligence in conducting their activities;

2. (b)

   apply appropriate policies and procedures for preventing malpractices that can reasonably be expected to affect the interests of the investors and the qualifying portfolio undertakings;

3. (c)

   conduct their business activities in such a way as to promote the best interests of the qualifying venture capital funds they manage, the investors therein and the integrity of the market;

4. (d)

   apply a high level of diligence in the selection and ongoing monitoring of investments in qualifying portfolio undertakings;

5. (e)

   possess adequate knowledge and understanding of the qualifying portfolio undertakings in which they invest;

6. (f)

   F1treat their investors fairly. This shall not preclude more favourable treatment of private investors than of a public investor, provided that such treatment is compatible with State aid rules, in particular Article 21 of Commission Regulation (EU) No 651/2014 ^f1 , and is disclosed in the fund’s rules or instruments of incorporation;

7. (g)

   ensure that no investor obtains preferential treatment, unless such preferential treatment is disclosed in the rules or instruments of incorporation of the qualifying venture capital fund.