Document ID: chunk:federal_register_of_legislation:F2012L02230:body:0:p4
Version: federal_register_of_legislation:F2012L02230
Segment Type: other
Provision Reference: 
Character Range: 8465–11707

have a conflicts management policy that is approved by the Board. At a minimum, the conflicts management policy must include controls and processes applying to all responsible persons and all employees of the RSE licensee for:

       (a)          identifying and monitoring all potential and actual conflicts;

       (b)          avoiding conflicts where required to do so[6];

       (c)          where there is a conflict, managing that conflict, or ensuring that the conflict is managed in accordance with the requirements to give priority to the duties to, and interests of, beneficiaries in sections 52(2)(d) and 52A(2)(d) of the SIS Act;

       (d)          ensuring that appropriate action is taken in the event of a conflict arising, including on-going evaluation of management of the conflict and provision for escalation or alternative action if required;

       (e)          recording in the minutes of Board, board committee and other relevant meetings details of each conflict identified and the action taken to avoid or manage this conflict; and

       (f)           processes for the development and maintenance of the registers required in paragraphs 15(c) and (d).

    19.         An RSE licensee's conflicts management policy must include processes for undertaking regular and thorough enquiry to identify all conflicts arising from the RSE licensee's relationship, or the relationship of a responsible person or employee, with an existing or prospective service provider or adviser, including those conflicts that have the potential to affect the service provider's performance in respect of the obligations undertaken for the RSE licensee's business operations.[7]

Review of conflicts management framework
    20.         An RSE licensee must ensure that the appropriateness, effectiveness and adequacy of its conflicts management framework are subject to a comprehensive review by operationally independent, appropriately trained and competent persons at least every three years.

    21.         The scope of the comprehensive review of an RSE licensee's conflicts management framework must have regard to the size, business mix and complexity of the RSE licensee's business operations, the extent of any change to those operations and any changes to the external environment in which the RSE licensee operates.

    22.         At a minimum, the comprehensive review of the conflicts management framework must consider:

       (a)          whether all relevant duties and all relevant interests have been identified and are being addressed in accordance with the RSE licensee's conflicts management framework;

       (b)          the level of compliance with the conflicts management policy, including reporting on the registers of relevant duties and relevant interests; and

       (c)          any non-compliance with the conflicts management policy, including steps taken to return to, and improve, ongoing compliance.

    23.         In addition to the comprehensive review required in paragraph 20, an RSE licensee must, on an annual basis, review its conflicts management framework and report the results of this review to the Board.

Adjustments and exclusions
    24.         APRA may,