• Conflicts of Interest

    • GEN 3.3.21

      An Authorised Person must comply with Principle 7 as outlined in Rule 2.2.7, taking all reasonable steps to identify conflicts of interest between:

      (1) the Authorised Person, including its managers, Employees and Clients, or any person directly or indirectly linked to them by control; or
      (2) one Client of the Authorised Person and another Client,

      that arises or may arise in the course of the Authorised Person providing any Regulated Activities.

    • GEN 3.3.22

      For the purposes of identifying the types of conflict of interest that arise, or may arise, in the course of providing a service and whose existence may entail a material risk of damage to the interests of a Client, an Authorised Person must take into account, as a minimum, whether the Authorised Person or a person directly or indirectly linked by control to the Authorised Person:

      (1) is likely to make a financial gain, or avoid a financial loss, at the expense of the Client;
      (2) has an interest in the outcome of a service provided to the Client or of a Transaction carried out on behalf of the Client, which is distinct from the Client's interest in that outcome;
      (3) has a financial or other incentive to favour the interest of another Client or group of Clients over the interests of the Client;
      (4) carries on the same business as the Client; or
      (5) receives or will receive from a person other than the Client an inducement in relation to a service provided to the Client, in the form of monies, goods or services, other than the standard Commission or Fee for that service.

    • GEN 3.3.23

      If arrangements made by an Authorised Person to manage conflicts of interest in accordance with Principle 7 are not sufficient to ensure, with reasonable confidence, that risks of damage to the interests of a Client will be prevented, the Authorised Person must clearly disclose the general nature and/or sources of conflicts of interest to the Client before undertaking business for the Client.

    • GEN 3.3.24

      The disclosure in Rule 3.3.23 must:

      (1) be made in a durable medium; and
      (2) include sufficient detail, taking into account the nature of the Client, to enable that Client to take an informed decision with respect to the service in the context of which the conflict of interest arises.