HC-2.3 HC-2.3 Avoidance of Conflicts of Interest
HC-2.3.1
Each
approved person must make every practicable effort to arrange his personal and business affairs to avoid a conflict of interest with thelicensee .January 2013HC-2.3.2
The Board must establish and disseminate to its members and management, policies for the identification, reporting, disclosure, prevention, or strict limitation of potential conflicts of interest. It is
senior management's responsibility to implement these policies. Rules concerning connected party transactions and potential conflicts of interest may be dealt with in the Code of Conduct (see HC-2.2.4). In particular, the CBB requires that any decisions to enter into transactions, under whichapproved persons would have conflicts of interest that are material, should be formally and unanimously approved by the full Board. Best practice would dictate that anapproved person must:(a) Not enter into competition with thelicensee ;(b) Not demand or accept substantial gifts from thelicensee for himself orconnected persons ;(c) Not misuse thelicensee's assets;(d) Not use thelicensee's privileged information or take advantage of business opportunities to which thelicensee is entitled, for himself or his associates; and(e) Absent themselves from any discussions or decision-making that involves a subject where they are incapable of providing objective advice, or which involves a subject or (proposed) transaction where a conflict of interest exists.Amended: January 2020
Added: January 2013HC-2.3.3
Licensees must have in place a board approved policy on the employment of relatives ofapproved persons and a summary of such policy must be disclosed in the annual report of thelicensee .April 2016