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Guidance Note: Identifying and managing director conflicts of interest

This guidance note answers key questions around what a conflict of interest is, and when a director is ‘interested’. It provides guidance on identifying, declaring and managing conflicts of interest, and introduces a simple tool to record conflicts of interest.

The predominance of certain companies, individuals, and opportunities in a small industry result in conflicts of interest being a fact of life in the New Zealand financial services industry. Whether these conflicts are good or bad is largely determined by how they are dealt with by the individuals and companies involved. The FMA’s Strategic Risk Outlook 2017 has identified conflicted conduct as one of its seven key priorities so the issue will gain regulator focus.

This guidance note helps answer the question of how businesses in our industry should handle potential, or real, conflicts of interest.

Download the full guidance note below to read more.