Yesterday the FCA fined Aviva Investors £17.6 bn for systems and controls failings that meant it failed to manage conflicts-of-interest fairly. This is a new topic for this blog and it is perhaps worthwhile just to quote directly from the FCA's spokeswoman to explain why conflicts-of-interest is important.
" Ensuring that conflicts-of-interest are properly managed is central to the relationship of trust that exist between asset management and their customers. It is also a fundamental regulatory requirement.....not doing so risks customers' interests being overlooked in favour of commercial of personal interests".
This is another example of the legacy issue where today's leaders are sorting out and paying for the unethical behaviours of predecessors when they should really be freed up to focus on rebuilding reputation and regaining the trust of stakeholders.
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