Managing conflicts of interest: ASIC Discussion Paper

ASIC has released a discussion paper on managing conflicts of interest in the financial services industry. Financial services licensees have been required to have in place adequate arrangements to manage conflicts of interest since 1 January 2005.

The discussion paper uses hypothetical case studies illustrating real or perceived conflicts of interest across the financial services industry to explain ASIC’s views on how those conflicts should be managed.

The discussion paper suggests practical ways of managing different types of conflicts of interest and covers financial advisers (wholesale and retail), licensees, research report providers, product issuers and fund managers. Comments are due by Friday 9 June 2006.

Following the consultation period, the case studies will most likely be incorporated in ASIC Policy Statement 181.

Link: ASIC sues Citigroup