The FSA’s high level Principle 8 addresses the important area of effective management of conflicts of interest.

“A firm must manage conflicts of interest fairly, both between itself and its customers and between a customer and another client”

The manner in which conflicts of interest are managed has come under increased regulatory scrutiny following a series of regulatory failures that are seen as having been caused by a failure of senior management to handle effectively the conflicts that existed within the organisation. Principle 8 acknowledges that although conflicts of interest do and will exist between an organisation and its customers as well as between different customers for whom the organisations acts, it is for the organisation to ensure that its conflicts are effectively dealt with.

Over the past 2 years the FSA has written to Chief Executive officers of both Investment Banks and General Insurers reminding them of their responsibility to implement processes to enable their organisation to manage conflicts of interest effectively.

How we can help

• Provide induction, ongoing or remedial training and coaching to your staff on the latest regulation relating to conflicts management and how it might impact the way you do business,
• Review your conflict management systems and controls and advise on how they might be strengthened
• Supply you with interim/seconded compliance resource to support your conflicts management arrangements assisting you in meeting your regulatory obligations.