It typically refers to a relationship in which one person has significant financial dealings in their relationship with another, for example, when he/she is a recipient of any kind of payment (loan or gift) during a specified period immediately preceding and which amount is equivalent to at least a specied fraction of annual income. Relationships in which the payment is based on arm’s length transactions are typically excluded. Based on the rationale applied, Material Financial Relationships can be recorded in Affinis(IDD) by each employee along with rationale if needed.