Conflicts of Interest Statement of Good Practice

The means of preventing, managing or mitigating conflicts of interest that are suggested in the Statement of Good Practice include periodic reviews within each business area to identify scenarios or situations that could potentially create a conflict, as well as ensuring the appropriate identification and escalation procedures for actual conflicts.

There are eight specific Good Practice Statements that firms should look to when considering their own working practice, including:

• having the necessary policies, procedures and training in place across a firm;
• having senior management provide oversight and governance around how conflicts of interest are identified and managed; and
• having controls in place to either prevent conflicts of interest from arising, as well as managing or mitigating those that do arise.

Conflicts of Interest Statement of Good Practice

This Statement of Good Practice aims to provide practical, working level guidance and examples for market participants to draw on, as they consider ways to prevent, manage and mitigate conflicts of interest that arise within their firms.

Conflicts of interest may arise between (i) clients; (ii) a firm and its client(s); and (iii) employees and a firm/client(s). These conflicts have the potential to be detrimental, not only to the firms involved, but to clients and the financial markets more generally. Dealing with them effectively is one way in which instances of this kind of market misconduct can be minimised.

Last updated 13 May 2020