Companies in Financial Services and Conflicts of Interest


Did you know that companies in financial services face a higher risk of conflict of interest? This is mainly due to the nature of the industry, often characterized by significant influence and connections.

Five types of economic conflicts of interest

➕ Company-Client

➕ Customer-Client

➕ Employee-Client

➕ Employee-Company

➕ Third-party Partner/Supplier

A few examples of economic conflicts of interest

👉 Ownership of shares, rights and/or affiliations

👉 Loans extended by the institution to a business owned by its employees

👉 Participation on a board or ownership of an entity with conflicting interests

👉 Financial investments and other economic stakes in business clients

👉 Investments based on insider information

How to stop conflicts of interest before they start

✅ Give incentives for compliance

✅ Provide good and relevant training

✅ Perform regular auditing and monitoring

✅ Clarify consequences for noncompliance

✅ Have clear guidelines and internal procedures

Without proper management, conflicts of interest can easily expose businesses to reputational harm and even criminal sanctions. Prepare your employees with tailor-made code of conduct training from Serapy. Get your demo now.

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