IF: If supervisor and future fellow have an inter-relationship (e.g. family ties, shared premises etc.), is this eligible?

The Guide for Applicants explains that (p. 34 of the IF GfA-2015) the following:
"Any inter-relationship between different participating institutions or indidivuals (e.g. family ties, shared premises or facilities, joint ownership, financial interest, overlapping staff or directors etc.) must be declared and justified in this part of the proposal"
"This part of the proposal" is the List of participants.