Conflicts of Interest and Related Party Transactions Policy Template (AFSL)

This template is a complete conflicts of interest and related party transactions policy for an Australian financial services licensee. It sets out how conflicts are identified, assessed, evaluated and managed across your business, and how dealings involving related parties and close relationships are handled. It is drafted for a licensee that acts as trustee or investment manager of one or more funds.

Use this policy if you:

• hold an Australian financial services licence and must maintain adequate conflicts management arrangements
• act as trustee or investment manager of one or more managed investment schemes
• need conflicts of interest and related party transactions covered in a single document
• want a documented chain of responsibility between your compliance officer and board
• need declaration forms and a conflicts register your people can start using immediately

It is suited to:

• AFSL holders providing financial services to investors
• trustees and investment managers of managed investment schemes
• compliance officers, responsible managers and company secretaries
• boards and the investment or remuneration committees that advise them

What this policy covers:

• what a conflict of interest is, using the RG 181 definition, and the four circumstances that increase risk
• licensee obligations under section 912A of the Corporations Act 2001 (Cth), reg 7.6.03(g) of the Corporations Regulations and Condition 4 of Pro Forma 209
• general law and statutory duties of directors and officers, and trustee duties to investors
• related party transactions under Chapter 2E of the Corporations Act as modified by Part 5C.7, with unregistered scheme fund transactions carved out
• annual identification reviews across eight areas, plus six trigger events requiring an out-of-cycle review
• the board decision to avoid, control, control and disclose, or disclose each conflict
• disclosure that is timely, prominent, specific and meaningful, and quarterly reporting to the board
• breach handling, risk ratings, reporting to ASIC where required and seven-year record retention

You receive an editable Word document with four schedules: a description of conflict management arrangements pre-populated with five worked scenarios, a chain of responsibility, three declaration forms covering commencement, disclosure of a conflict and annual self-assessment, and a nine-column conflicts of interest register. Placeholders such as [Company Name] and [Company ACN] mark the fields you complete, and the key obligations table arrives populated with responsible persons, timing and cross-references. Because it does not account for your licence conditions, fund structure or risk profile, have it reviewed and tailored to your organisation before you adopt it.