To have adequate arrangements for managing conflicts of interest within LeMessurier Securities Pty Ltd (the company)
- To avoid conflicts of interest which may impact or potentially impact the company’s obligations under its AFS Licence
- To identify and assess actual, apparent and potential conflicts of interest in a timely and responsible manner.
- Decide upon and implement an appropriate response to conflicts of interest as they arise.
- To require that all conflicts of interest be adequately managed.
- To keep a register of known conflicts of interest.
- To review conflicts of interest regularly
- To train staff in identifying and reporting conflicts of interest as they arise in accordance with PS146 requirements.
- To foster a culture of reporting of conflicts of interest.
The company has adopted documented the Conflicts of Interest Policy and Procedures shown below.
Conflict of Interest Policy and Procedure
Conflicts of Interest Policy Statement
This policy sets how LemSec (the company) will manage existing and potential conflicts of interest. The company is committed to comply with our licence obligations to implement procedures to manage conflicts of interest as detailed in ASIC statement PS181 and Section 912 (1)(aa) of the Corporations Act. This policy has been endorsed by Mr. Peter LeMessurier, Managing Director (and Responsible Officer) and it is the responsibility of all Directors, Responsible Officers, Employees and Authorised Representatives (representatives) to be familiar with and comply with this policy and procedure.
This policy is a general guide to acceptable and appropriate behaviour within the company and it is mandatory that representatives of the company comply with its contents. It is written to ensure that the company and its representatives conduct business in a manner that is fair, impartial, ethical and proper. Compliance with this policy will be monitored and any non compliance may result in disciplinary action including termination and possible prosecution.
The company considers that representatives have a responsibility to ask questions, seek guidance, report suspected violations, and express their concerns regarding compliance with this policy. Absence of a specific guideline covering a specific situation does not relieve representatives from exercising the highest ethical standards applicable to the circumstances.
Conflict of Interest Definition
Conflicts of interest are circumstances where it may be considered that some or all of our clients’ interests are inconsistent with or diverge from our own interests. This includes actual, apparent or potential conflicts.
Compliance with the Law
The company is committed to complying at all times with both the letter and the spirit of all relevant laws, rules, regulations, codes and standards of good practice.
The company will not condone the activities of any representative achieving results by violating the law or engaging in unethical behaviour. No activity should be carried out that cannot stand up to public scrutiny.
If a representative is any doubt about the application or interpretation of any legal requirements they should refer the matter to the Managing Director.
In many circumstances, the company expects that disclosure of a particular conflict will adequately manage the conflicts and enable the company to provide the financial services honestly and fairly. Accordingly, the company requires that all clients receive a Financial Services Guide irrespective of whether they are considered a retail or wholesale client.
LemSec and Representatives Conduct
All representatives of the company are responsible for conducting themselves in a manner that upholds the company’s standards and values. Each representative is responsible and accountable for their own business conduct and must obey the laws which apply to the company’s business, and must live up to the standards and values expressed in this Conflicts of Interest Policy.
All representatives of the company will have their actions reviewed under this policy and the applicable laws. Any representative who does not act accordingly may be subject to disciplinary action including suspension, reduction in salary, demotion, or termination. The company will not compromise compliance with this policy and applicable laws to meet its financial plans or maximise profit.
All representatives of the company should be mindful that their actions may render them and the company in violation of specific laws and provisions of this policy and as a result may incur penalties, fines or other consequences.
Representatives have a responsibility to notify the Managing Director immediately if they violate or suspect they may violate this policy. All representatives are expected to fully co-operate with any investigation of alleged or actual violation in relation to their conduct.
Identifying Conflicts of Interest
The Managing Director is ultimately responsible for identifying and managing actual, potential or apparent conflicts.
The following may assist in identifying possible conflicts of interest and should be referred to the Managing Director.
- Directorships and shareholdings¹
- Membership of a group
- Commission payments
- Profit share arrangements
- Related companies
- Gifts of a personal or entertainment nature exceeding $300
- Holding an interest in a contract which has been entered into by the company
- Competes with the company
- Receives benefit from a party whose interests may conflict with the company
- Holds an office or a position or a property having duties or interests, which conflict with the duties to, or interests of the company
Representatives holding shares via share trusts or portfolios not directly controlled or administered by the representative will not be considered a material interest for the purpose of the policy provided the meet the Material Interest Test.
Material Interest Test: A holding of less than 5% if the issued capital or partnership shares of an entity or which the value is less than $25,000 based upon current share prices.
Managing Conflicts of Interest
We will manage conflicts of interest by controlling, avoiding or disclosing the conflict.
Our principle is to ensure all our clients have clear and detailed information regarding the conflict to enable the client to decide whether to use our services.
Controlling Conflicts: – Implementing procedures to identify assess and evaluate conflicts to ensure the clients’ interests are not compromised.
Avoiding Conflicts: – Where the conflict may be of a serious nature to impact on ours and our clients’ interests, it may be necessary to avoid it and not provide the service.
Disclosing Conflicts: – Where the conflict can be managed by disclosing it to a client, it will be generally disclosed within a SOA or FSG. The information must be given to the client in a timely, specific and clear manner.
Administration of the Conflict of Interest Procedures
All actual, potential or apparent conflicts must be referred to the Managing Director who will assess the conflict and advise the appropriate course of action. All conflicts will be recorded in the conflicts of interest registers.
The Managing Director is responsible for:
- Developing and implementing the policy and procedures
- Identifying and managing the conflicts of interest
- Maintaining the conflicts of interest registers
- Training staff on the policy and procedures
- Reviewing and updating the policy and procedures
- Reporting to management
All enquiries about this policy and subsequent responses will be provided in confidence.
Conflicts of interest records must be kept for at least seven years. This includes:
- Reports given to senior management
- Records of disclosure
- The Conflicts of Interest Management and Events Registers, and
- Any other documents relating to disclosure or as directed by the company
This procedure and attaching register will be reviewed every quarter by the Managing Director
Attachments: PS181 – Conflicts of Interest Register