📘 Resource: Overview and Types of Conflicts of Interest
Step Type: Text
What learners will learn:
Conflicts of interest that financial institutions must avoid.
Step Description:
Financial institutions must avoid conflicts of interest. In this step, we look in more detail at the different types of conflicts of interests that financial institutions must avoid.
Summary of Content
This step explains the importance of a Code of Ethics in financial institutions, outlines key regulations that enforce ethical conduct, and highlights common ethical challenges in the industry. It emphasizes the role of ethics in maintaining trust, compliance, and reputation.
Key Topics Covered
Importance of a Code of Ethics:
Maintaining trust
Avoiding conflicts of interest
Preventing fraud and corruption
Ensuring regulatory compliance
Protecting institutional reputation
Enhancing corporate culture
Regulations related to ethical conduct:
Sarbanes-Oxley Act (SOX)
Dodd-Frank Act
Foreign Corrupt Practices Act (FCPA)
Gramm-Leach-Bliley Act (GLBA)
SEC and FINRA rules
Ethical challenges in financial institutions:
Pressure to meet financial targets
Conflicts of interest
Client confidentiality
Whistleblowing concerns
Cultural differences in global operations
📘 Overview: Conflicts of Interest
Step Type: Polygraph
What learners will learn:
How conflicts of interest are generally defined.
Step Description:
How are conflicts of interest generally defined? In this step, we'll review an overview of conflicts of interest and why they are problematic.
Summary of Content:
Defines what a conflict of interest is.
Explores why they pose a risk to institutions.
Discusses how to identify and manage them effectively.
Key Topics Covered
Definition of conflicts of interest
Common causes (personal gain, outside influence)
Importance of training and clear internal policies
📘 Types of Conflicts of Interest
Step Type: MultiChoice
What learners will learn:
Types of conflicts of interest that pose a risk to financial institutions.
Step Description:
It is helpful to have an overview of the conflicts of interest that pose issues for financial institutions. In this step, we'll review these different types.
Summary of Content:
Personal conflicts (e.g. private interests affecting job duties)
Organizational conflicts (conflicting institutional responsibilities)
Third-party conflicts (outside influence from vendors/partners)
Duty of loyalty and client vs client conflicts
Key Topics Covered
Personal, organizational, and third-party conflicts
Self-dealing
Conflict between clients
Duty of loyalty
📘 Resource: Regulatory Framework, Impacts, and Best Practices for Managing Conflicts of Interest
Step Type: Text
What learners will learn:
Conflicts of interest and their impact on financial institutions.
Step Description:
Conflicts of interest can have significant consequences for financial institutions, which is why it’s crucial for them to take proactive measures to prevent them. In this step, we will explore the impacts of these conflicts and the best practices for managing them.
Summary of Content
This step outlines the regulatory framework, risks, and best practices for managing conflicts of interest in financial institutions. It details key laws and rules, the potential impact of unmanaged conflicts, and strategies for identifying, disclosing, and mitigating conflicts to protect clients and maintain institutional integrity.
Key Topics Covered
Key regulations addressing conflicts of interest:
Dodd-Frank Act
Investment Advisers Act of 1940
Sarbanes-Oxley Act (SOX)
SEC and FINRA rules
Foreign Corrupt Practices Act (FCPA)
Impacts of unmanaged conflicts:
Regulatory penalties
Reputational damage
Financial loss
Loss of client trust
Decreased employee morale
Best practices for managing conflicts of interest:
Clear conflict of interest policy
Employee training and awareness
Conflict disclosure requirements
Segregation of duties
Whistleblower protections
Independent oversight
📘 Regulatory Framework for Managing Conflicts of Interest
Step Type: True or False
What learners will learn:
The regulatory framework involved in managing conflicts of interest.
Step Description:
There is a regulatory framework for managing conflicts of interest. In this step, we'll look at this regulatory framework in more detail.
Summary of Content:
Clarifies that conflicts are regulated by multiple laws.
Includes Dodd-Frank, Sarbanes-Oxley, Investment Advisers Act, FCPA.
Reinforces importance of disclosure and oversight.
Key Topics Covered
Regulatory requirements for financial institutions
Rules from SEC, FINRA, FCPA, etc.
Disclosure obligations
📘 Impact of Conflicts of Interest on Financial Institutions
Step Type: Streak
What learners will learn:
The impact of conflicts of interest on financial institutions.
Step Description:
Conflicts of interest have a great impact on financial institutions. In this step, we'll review this impact and how it can be avoided.
Summary of Content:
Reputational damage and financial penalties
Loss of client trust
Impact on employee morale and legal risk
Key Topics Covered
Regulatory penalties
Loss of business and brand damage
Financial losses and toxic work environment
📘 Best Practices for Managing Conflicts of Interest
Step Type: True or False
What learners will learn:
The best practices for managing conflicts of interest.
Step Description:
Luckily, following a list of best practices can help financial institutions manage conflicts of interest. In this step, we will review these best practices.
Summary of Content:
Importance of clear policies and training
Whistleblower protections and disclosure systems
Independent oversight and regular updates
Key Topics Covered
Policy documentation
Training and awareness
Segregation of duties
Whistleblower protections
📘 Mastery Step: Conflicts of Interest
Step Type: Crossword
What learners will learn:
An overview of the Conflicts of Interest course.
Step Description:
Let's test your mastery of the Conflicts of Interest course!
Summary of Content:
Reinforces key terms related to conflicts of interest.
Covers policy, regulation, and institutional impact.
Key Topics Covered
INTEREST
POLICIES
ORGANIZATIONAL
LOYALTY
REGULATIONS
SOX
PENALTIES
FINANCIALLOSS