Conflicts of Interest

Identify potential conflicts of interest between client advisors and manage them in time

Discover potential conflicts
Prevent conflicting interests with rule-based analyses

Every financial service provider must be prepared for arising conflicts when internal and third-party interests collide. Clear-cut conflict of interest management and defined policies help banks find solutions. With ACTICO’s MCI software banks can determine potential conflicts of interest and advert related risks.

approach
Use graphically modeled rules to analyze internal & third-party interests

Conflicts of interest in banks and financial services result from the variety of services offered: securities transactions for customers, internal and staff transactions, mergers and acquisitions, portfolio management and more. A bank must adopt a position in which conflicts of interest do not have an adverse effect on customers.

Conflicts Arise from Complex Projects

Today, bank employees are involved in many complex projects for the bank itself and its customers. An employee or a financial institution will at some point be confronted with actual or potential conflicts of interest. But due to the number and complexity of projects, conflicts of interest are often difficult to identify or avoid. A systematic approach can provide relief and help institutions take countermeasures.

Adverting Customer Risk of Loss

A bank's management team is responsible for systems that analyze and manage conflicts of interest, including organizational measures, such as separating divisions, and technical measures, such as logging transactions involving customers, relevant persons or the bank. Technical systems must automatically monitor all relevant activities within the bank and decide whether a conflict of interest exists.

Modeling Conflict of Interest Rules in a Matrix

Each bank individually determines: the services where conflicts of interest can occur, which divisions and employees are affected and individuals or institutions that may be involved. Based on this conflict of interest matrix, rules arise that are modeled graphically in our MCI software. The analysis only finds matches for constellations where potential conflict exists due to their content or nature. The objective is to avert the risk of loss for the bank, advisor and customer.

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Software for managing conflicting interests
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Software for discovering conflicts of interests
Management of Conflicting Interests (MCI)
Discover Conflicts of Interest
MCI, identifies potential conflicts of interest on the basis of modeled rules. Analyzed results are automatically transferred to the internal case processing and appear on the Compliance Officers work list requesting clarification. Measures taken are transparent and document creating an audit-proof trail.