Managing Conflicts of Interest

Conflicts of interest are an unavoidable part of financial services. They arise whenever personal, commercial or organisational interests have the potential to influence professional judgement, decision-making or customer outcomes. The challenge is not simply identifying conflicts, but ensuring they are managed effectively and do not undermine compliance obligations or client interests.

Financial services businesses are required to maintain adequate arrangements for managing conflicts of interest. This extends beyond disclosure and requires organisations to proactively identify conflicts, assess their significance, and implement controls to reduce the risk of adverse outcomes. In some circumstances, disclosure alone will be insufficient, requiring stronger management strategies or the avoidance of particular activities altogether.

Regulators increasingly expect conflict management frameworks to be risk-based, practical and capable of demonstrating effective control. This includes understanding how remuneration structures, business models, referral arrangements, ownership interests and other incentives may influence behaviour, advice or decision-making.

This resource hub explores conflict management, conflicts of interest, best-interests obligations, disclosure requirements, remuneration structures, governance arrangements, and ASIC expectations. These resources provide practical guidance to help financial services businesses identify, assess and manage conflicts effectively while supporting better customer outcomes and regulatory compliance.