Conflicts management policyConflicts management policy

Conflicts management policy

18. An RSE licensee must have a conflicts management policy that is approved by the Board. At a minimum, the conflicts management policy must include controls and processes applying to all responsible persons and all employees of the RSE licensee for:

(a) identifying and monitoring all potential and actual conflicts;

(b) avoiding conflicts where required to do so[6];

(c) where there is a conflict, managing that conflict, or ensuring that the conflict is managed in accordance with the requirements to give priority to the duties to, and interests of, beneficiaries in sections 52(2)(d) and 52A(2)(d) of the SIS Act;

(d) ensuring that appropriate action is taken in the event of a conflict arising, including on-going evaluation of management of the conflict and provision for escalation or alternative action if required;

(e) recording in the minutes of Board, board committee and other relevant meetings details of each conflict identified and the action taken to avoid or manage this conflict; and

(f) processes for the development and maintenance of the registers required in paragraphs 15(c) and (d).

19. An RSE licensee’s conflicts management policy must include processes for undertaking regular and thorough enquiry to identify all conflicts arising from the RSE licensee’s relationship, or the relationship of a responsible person or employee, with an existing or prospective service provider or adviser, including those conflicts that have the potential to affect the service provider’s performance in respect of the obligations undertaken for the RSE licensee’s business operations.[7]