MyComplianceOffice Blog

A conflict of interest happens when a person with multiple interests serves one to the detriment of another. For example, an individual may seek to create personally-beneficial outcomes at the expense of fairness and competition. They may engage in activities that put the confidentiality of their firms’ information at risk or put personal financial gains ahead of their firms’, clients’, or broader financial market’s interests.

Recent enforcements by the Monetary Authority of Singapore (MAS) highlight the need for SGX-listed companies to actively work against conflicts of interest within their organisations and maintain robust corporate compliance processes.

The days when firms could write off regulatory fines as the cost of doing business are long over. Both the financial penalties and the reputational damage are too costly in the current regulatory environment.

According to the 2023 Starling Compendium, firms must have processes in place to prevent misconduct from happening in the first place.

The United States Securities and Exchange Commission's Division of Examinations  Risk Alert: Observations from Examinations of Newly-Registered Advisers covers the regulator’s typical focus areas and common observations. The Alert warns newly-registered advisers to pay close attention to the firm’s compliance policies and procedures, disclosures and marketing practices – advice that well-established firms should be heeding as well.

The stability of the global banking system is a top-of-mind concern for everyone right now. And as the world worries about bank liquidity and the safety of their deposits, a handful of executives have been using access to insider information to turn staggering profits by selling off company stock.