Description

Conflict of Interest Management Policy for FSPs

The Conflict of Interest Management Policy is an editable downloadable template pack designed for authorised Financial Services Providers that need a practical framework for identifying, avoiding, mitigating, disclosing, recording and reviewing conflicts of interest.

This Conflict of Interest Management Policy helps an FSP manage conflict risks linked to financial interests, ownership interests, third-party relationships, product supplier arrangements, referral arrangements, gifts, hospitality, incentives and representative remuneration.

For related compliance templates, you may also view our Remuneration Policy Pack, Ethics Policy Template Pack and Fraud and Corruption Policy Pack.

For official regulatory information, you can also visit the FSCA FAIS regulated entities page.

What Is Included In This Conflict of Interest Management Policy?

This template is designed to help FSPs move beyond a basic policy statement. It includes policy wording, registers, disclosure tools, review checklists and corrective action records that can be used as evidence of implementation.

The policy includes sections for:

• Policy review control sheet
• Policy review details and change log
• Training and implementation record
• Introduction and policy statement
• Purpose of the policy
• Legal and regulatory framework
• Scope of application
• Definitions, including conflict of interest, financial interest, immaterial financial interest, ownership interest and sign-on bonus
• Core conflict management principles
• Roles and responsibilities
• Identification of conflicts of interest
• Permitted financial interests
• Prohibited financial interests
• Sign-on bonus restrictions
• Ownership interests, associates and third-party relationships
• Avoidance and mitigation of conflicts
• Client disclosure requirements
• Gifts, hospitality and immaterial financial interests
• Representative remuneration and incentives
• Training, awareness and publication
• Monitoring, reporting and annual review
• Recordkeeping requirements
• Breaches and consequences of non-compliance
• Contact details and policy approval

Conflict of Interest Management Policy Annexures Included

The Conflict of Interest Management Policy includes practical annexures that help the FSP keep proper records of conflicts, financial interests, gifts, ownership interests, third-party relationships, client disclosures and corrective actions.

The annexures include:

• Annexure A: Conflict of Interest Declaration Form
• Annexure B: Gifts and Financial Interest Register
• Annexure C: Ownership Interest Register
• Annexure D: Associate and Third-Party Relationship Register
• Annexure E: Client Conflict Disclosure and Consent Form
• Annexure F: Conflict Incident and Mitigation Register
• Annexure G: Representative Remuneration and Incentive Review Checklist
• Annexure H: Annual Conflict of Interest Attestation
• Annexure I: COI Management Annual Review Checklist
• Annexure J: Publication and Accessibility Record
• Annexure K: Corrective Action Register

Why FSPs Need a Conflict of Interest Management Policy

Conflicts of interest can affect advice quality, product recommendations, supplier selection, complaint handling, client trust and fair customer outcomes. An FSP must be able to show that conflicts are not ignored, hidden or handled informally.

A written Conflict of Interest Management Policy helps the FSP document how conflicts will be avoided where possible, mitigated where unavoidable, disclosed to clients where required and recorded for monitoring and review purposes.

This template helps address common weaknesses such as:

• No written conflict of interest management policy
• No register for gifts, hospitality and financial interests
• No process to monitor the R1 000 immaterial financial interest threshold
• No ownership interest register
• No associate or third-party relationship register
• No client conflict disclosure and consent form
• No conflict incident and mitigation register
• No review of representative remuneration and incentives
• No annual conflict of interest attestation
• No evidence that the policy is publicly accessible or available on request

Gifts, Financial Interests and Third-Party Relationships

The policy includes guidance and registers for gifts, hospitality, training benefits and other financial interests. It also supports the monitoring of immaterial financial interests from the same third party during a calendar year.

The template also includes registers for ownership interests, associates, product supplier arrangements, referral arrangements, distribution relationships and other third-party relationships that may create actual, potential or perceived conflicts of interest.

Client Disclosure and Conflict Mitigation Tools

The Conflict of Interest Management Policy includes a client conflict disclosure and consent form for situations where a conflict cannot reasonably be avoided but can be mitigated without unfairly prejudicing the client.

It also includes a conflict incident and mitigation register to track conflicts from identification to closure, including whether the conflict was avoided, what mitigation action was taken, whether the client was informed and whether manager review was completed.

Remuneration and Incentive Review

The representative remuneration and incentive review checklist helps the FSP assess whether remuneration arrangements could undermine fair customer outcomes. It includes checks for product supplier preference, product preference, advice quality, FAIS compliance, complaints and service standards.

This is useful where the FSP pays commission, incentives, production bonuses, referral fees or any variable remuneration that may influence conduct.

Publication and Annual Review Records

The template includes a publication and accessibility record to help the FSP evidence that the policy is available to clients and the public. This may include website publication, office inspection copies, availability on client request or reference in the FSP’s disclosure notice.

The annual review checklist helps the FSP confirm whether the policy was reviewed, registers were updated, client disclosures were checked, remuneration was reviewed, training was completed and corrective actions were closed.

Who Should Use This Conflict of Interest Management Policy?

• Authorised Financial Services Providers
• Key Individuals responsible for FAIS oversight
• FSPs with representatives or employees
• FSPs receiving commission, referral fees, gifts or supplier benefits
• FSPs with product supplier or third-party arrangements
• Compliance officers assisting FSPs
• FSPs preparing for compliance monitoring or FSCA queries

Editable and Customisable FAIS COI Template

This Conflict of Interest Management Policy is editable and must be customised before use. The FSP must insert its name, FSP number, policy owner, responsible person, contact details, access method, publication method, review dates, internal approval details and evidence storage locations.

The template includes placeholders and practical implementation records. These should be completed before the final policy is approved, published and used by the FSP.

Important Compliance Note

This Conflict of Interest Management Policy is a compliance support document. It does not replace legal advice, regulatory advice, a remuneration review, a full conflict of interest assessment or a compliance officer review. Each FSP remains responsible for ensuring that the final policy is accurate, implemented, monitored, published where required and aligned with its actual business model, product suppliers, representatives and current FAIS obligations.