Managing Conflict of Interest

A conflict of interest arises when one has a personal interest that conflicts with a professional duty. All employees have a duty to act in the best interests of their employer and in the best interests of clients and to refrain from committing acts of fraud and market abuse. Directors themselves also have particular corporate governance responsibilities. Conflicts of interest can therefore arise at every level of an organisation and are regulated by a number of statutes and principles. Examples of these provisions include the Companies Act 71 of 2008, the Prevention and Combating of Corrupt Activities Act 12 of 2004 and the Financial Advisory and Intermediary Services Act 37 of 2002. Corporate governance principles also address conflicts of interest.

This short course provides an overview of the regulatory framework pertaining to conflicts of interest, focusing on the applicable legislation and the underlying principles. After providing an overview of the regulatory framework, this course provides common scenarios depicting conflicts of interest. This is followed by a short assessment to enable learners to measure their progress. This course, therefore, seeks to assist employees in developing their capacity to ethically manage conflicts of interest.