ASIC has defined conflicts of interest as circumstances where some or all of the interests of clients to whom a licensee provides financial services are inconsistent with, or diverge from, some or all of the interests of the licensee.
The licensee has an obligation to manage conflicts of interest that arise within their financial services business. This obligation applies to services provided to both retail and wholesale clients, and to the conduct of licensees as well as their representatives.
- Describe what a conflict of interest is
- Discuss why it is important to manage conflicts of interest
- Illustrate examples of conflict of interest
- Outline generic ways to mitigate conflict of interest
- Identify how ASIC recommends that licensees manage conflicts of interest
- Explain how conflicts of interest can be controlled
- Assess how and when conflicts should be avoided
- Evaluate how disclosure can be used to manage conflicts of interest
- Summarise key aspects of your organisation’s Conflicts of Interest Policy.