Where possible, conflicts of interest and conflicts between duty and interest should be removed. There must be recognition that conflicts of interest and conflicts between duty and interest should be eliminated rather than ‘managed’.
Several recommendations deal with conflicts of interest or conflicts between duty and interest. They include the recommendations:
- that mortgage brokers owe borrowers a best interests duty (Recommendation 1.2);
- about financial advisers disclosing any lack of independence (Recommendation 2.2);
- about conflicted remuneration with respect to:
- grandfathered commissions (Recommendation 2.4);
- mortgage brokers (Recommendation 1.3);
- life risk insurance products (Recommendation 2.5);
- general insurance and consumer credit insurance products (Recommendation 2.6); and
- add-on insurance products (Recommendation 4.4);
- about superannuation trustees (Recommendation 3.1); and
- about related party engagements for group life insurance through superannuation (Recommendation 4.14).