On examining the duty under section 175 of the Companies Act to avoid conflicts of interest, the court concluded that the actual knowledge of the individual director was relevant, even though section 175 makes no reference to a directors actual knowledge as a means of limiting the statutory duty. (and the Press) In one recent high-profile case, executives at China Rise Securities Asset Management Company were sanctioned by the Securities & Futures Commission of Hong Kong (SFC) for breaches including illegal short-selling activities by staff, lack of internal controls to monitor cross trades, and failure to report direct business transactions to the Stock Exchange of Hong Kong Limited. Companies in financial services have an elevated risk of encountering conflicts of interest, due largely to the influence and connections that come with the territory. Business as Usual - Markkula Center for Applied Ethics 0000002559 00000 n The more successful the company, the more they're likely to earn. All conflict of interest articles | Compliance Week Under following an accounting scandal that resulted in billions of dollars in losses of dollars in losses losses! Resolving conflicts of interest in community sport Russia's weaponisation of its gas and oil exports bolstered the case for an energy transition already made urgent by climate change. These generally occur when individuals or entities serve their private interests rather than fulfilling their professional responsibilities. The complaint was brought by Bernard Crofton, a former housing chief of Hackney council in London, who was cleared of racial discrimination by a judge last May after he had exposed a multimillion pound benefit fraud in the borough. He was sentenced to serve a 150-year prison sentence and died behind bars at the age of 82 in April 2021. Tahoma Bold Font Dafont, In other words, a conflict of interest exists when someone could abuse his or her official position for private gain. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. Terms defined in our ethics glossary that are related to the video and case studies include: behavioral ethics, bounded ethicality, conformity bias, moral emotions, moral equilibrium, moral reasoning, and obedience to authority. 0000004630 00000 n Is this a conflict of interest? These cookies will be stored in your browser only with your consent. In our view, Step #3 is especially important. It's Getting Harder to Convince People Otherwise.

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