Chennai Stock：Conflicts of interest and the Financial Market Infrastructure Committee
2.1: All Committee Members must be alert to situations that may give rise to a conflict. It is not possible to set out every situation which may result in a conflict. A judgement should be made on a case by case basis but common situations include:
The Bank’s general code of conduct (“Our Code”), which applies to Committee Members, contains an obligation to disclose and obtain the consent of the Bank before accepting a directorship. Controlling shareholdings in or Board membership of a commercial firm, and of a regulated financial services firm in particular, may create a conflict such as to disqualify an individual from membership or on-going membership of the Committee.
Relevant factors to consider would include:
whether the information that a Committee Member is likely to have access to as a result of membership of the Committee is likely to be, or could reasonably be seen to be, commercially valuable to the firm (or any member of the wider group to which it belongs);Chennai Stock
whether the firm (or any member of the wider group to which it belongs) is a Bank regulated or PRA-authorised person or subject to the Bank or the PRA’s statutory powers of direction; and
the size, significance and nature of the firm’s business (or that of any member of the wider group to which it belongs) in the context of the Bank’s and PRA’s statutory objectives.
In accordance with Our Code Committee Members must not take up any additional employment or consultancy arrangements without the prior consent of the BankAgra Wealth Management. Full, or part-time employment in a Bank or PRA-authorised person (or any member of the wider group to which it belongs), is likely to be regarded as giving rise to a conflict such as to disqualify the individual from membership or on-going membership of the Committee.Jaipur Investment
Whether such employment or consultancy arrangements may disqualify an individual or be a reason for the removal of a Committee Member will depend on:
the nature of the services provided. For example whether the role enables the individual to influence the Bank regulated or PRAauthorised person’s business or strategy or whether it is more concerned with the provision of technical advice;
the size, significance and nature of the Bank regulated or PRAauthorised person’s business in the context of the Bank or the PRA’s statutory objectives.
Our Code also includes provisions on confidentiality and a financial transactions policy which, for all Committee Members, requires full disclosure of assets and liabilities and the Bank’s prior consent for any relevant transactions. It also prohibits the acquisition of securities issued by any entity regulated by the Bank, including Bank-regulated persons or their financial holding companies. Holding a financial interest in a Bank regulated or PRA-authorised person, including an interest which arises under deferred compensation arrangements with such a firm, may disqualify an individual from becoming a member of the Committee unless it is not substantial in terms of the individual’s wealth at the time of appointment or is externally managed as part of a discretionary portfolio.
Existing holdings in such firms may be retained (provided they have been considered at the time of appointment not to substantially affect the functions as Committee Member that it would be proper for the person to discharge) but must not be actively managed thereafter other than to sell them, with the Bank’s prior consent in accordance with the Bank’s personal financial transactions policy.Surat Stock
In their official capacity, Committee members should be even-handed in all dealings with political parties. They must not occupy a paid party-political post or hold a sensitive or high-profile role in a political party.
On matters directly related to the work of the Committee or the Bank more widely, Committee members should not make statements or engage in any other activity that could call into question their political impartiality in their public role, and must consult the Secretary if in any doubt.
As provided in Our Code, if a Committee Member wishes to engage in political activity at any level, consent must be obtained from the Secretary, who will consult the Governors or the Chair of Court as necessary.
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