Perception of conflict of interest serious as the real thing

“If someone perceives a conflict of interest in your business you must treat it as such whether there is truth to it or not.” That was the advice given by Karty Mayne of Rosewill Consulting at an FSC: Get In Shape webinar lat Friday.

The event collected industry leaders which included Michael Hewes, manager, supervision at the FMA; Alistair Robertson special counsel, financial services from MinterEllisonRuddWatts; and Mark Banicevich of the FSC.

Mayne’s point, that perception of a conflict of interest should be treated as just as serious as the real thing comes after a key alteration in the wording of the regulations. The wording altered the definition of a conflict of interest to “any interest of the person giving the advice … that a reasonable client would expect to materially influence the advice given”.

The change in wording came after consultation with the industry and it requires advisers to put themselves in the shoes of the client when considering what constitutes a conflict of interest.