Superannuation (prudential standard) determination No. 7 of 2012 - Prudential Standard SPS 521 - Conflicts of Interest
The role of the Board and senior managemThe role of the Board and senior management
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The role of the Board and senior management
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An RSE licensee must have a conflicts management framework, approved by the Board of an RSE licensee (the Board)[4], to ensure that the RSE licensee identifies all potential and actual conflicts in the RSE licensee’s business operations and takes all reasonably practicable actions to ensure that they are avoided or prudently managed.
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For the purposes of this Prudential Standard, the conflicts management framework is the totality of systems, structures, policies, processes and controls within an RSE licensee’s business operations that identify, assess, mitigate, manage and monitor all conflicts.
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The Board is ultimately responsible for the development and maintenance of the RSE licensee’s conflicts management framework.
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The Board must take all reasonable steps to ensure that all responsible persons and other employees of the RSE licensee clearly understand:
(a) the need to identify all potential conflicts;
(b) the circumstances that might give rise to a conflict;
(c) the content and purpose of the RSE licensee’s conflict management framework; and
(d) their obligations, where applicable, as a responsible person of the RSE licensee.
- The Board must have in place appointment procedures that require incoming responsible persons to disclose all relevant duties and relevant interests prior to the person taking up the appointment.