CIPR 3.5.3 Conflicts of interest and material interests — management

(1) If a conflict of interest, or a material interest of the firm in a transaction, cannot reasonably be avoided, the firm must manage it in 1 or more of the following ways:
(a) establishing and maintaining an effective Chinese wall;
(b) requiring employees to disregard conflicts of interest and material interests when advising a customer or exercising a discretion;
(c) separately supervising employees whose main functions involve carrying out activities for, or providing services to, customers whose interests may conflict with those of the firm;
(d) establishing measures to prevent or limit any person from exercising inappropriate influence over how an employee carries out services or activities;
(e) establishing measures to prevent or control the simultaneous or sequential involvement of an employee in separate services or activities if the involvement may impair the proper management of conflicts of interest;
(f) taking any other steps that are necessary and appropriate to manage the conflict of interest or material interest.
(2) If an authorised firm distributes its products to customers through an intermediary, the firm must not make the continuation of its business relationship with the intermediary solely dependent on the introduction of a specified level of business.
(3) An authorised firm must ensure that the arrangements for remunerating its employees in relation to providing or recommending products or services to customers do not have the effect of impairing the firm's obligations:
(a) to act in the best interests of its customers; and
(b) to satisfy the requirements of these rules in relation to the suitability of products or services for each customer.
Guidance

Contracts of employment that provide for commission-only remuneration do not comply with this rule, nor do remuneration arrangements in which a basic salary is offset against commission earned.
Derived from QFCRA RM/2019-2 (as from 1st January 2020).