Conflicts of interest for members in business
220.1 Members are required to comply with the rules and fundamental principles and apply the conceptual framework set out in Section 200 to identify, evaluate and address threats.
220.2 A member in business may be faced with a conflict of interest when undertaking a professional service. In determining whether a professional service, relationship, or matter would result in a conflict of interest, a member should use professional judgment, taking into account whether a reasonable and informed third party who is aware of the relevant information would conclude that a conflict of interest exists.
220.3 A conflict of interest creates adverse interest and self-interest threats to the member’s compliance with the “Integrity and Objectivity Rule” and the Integrity and Objectivity principles. For example, threats may be created when:
(a) a member undertakes a professional service related to a particular matter involving two or more parties whose interests with respect to that matter are in conflict; or
(b) the interests of a member with respect to a particular matter and the interests of a party for whom the member undertakes a professional service related to that matter are in conflict.
220.4 A party may include an employing organisation, a vendor, a customer, a lender, a shareholder, or another party.
Requirements and application material