Conflicts: Of serious interest to ASIC

'Inconsistent' practices, 'inadequate' barriers and varying degrees of control failures; ASIC's recent review of corporate advisory research activity was certainly to the point.

As such, teams within investment banks, securities dealers, independent research houses, corporate advisory organisations and other market participants are on notice. Organisations holding an Australian Financial Services Licence (AFSL) must ensure their management of material non-public information (MNPI) and conflicts of interest practices meet the legal and regulatory requirements imposed upon them.

ASIC'S REVIEW

In August, ASIC released a report following a review of industry practices. It focused on broker research and corporate advisory activity.¹ While ASIC found many firms had policies in respect of MNPI and conflicts of interest management, its review uncovered practices and inadequate barriers that could compromise the intent of those policies. ASIC will now undertake further