4.3.4. Conflicts of interest

Statutory and regulatory framework

  1. Brokerage Supervision Act: Articles 17 §1(3), 38, 62, 63 and 83 to 84
  2. NBB regulations:
    • Royal Decree of 8 February 2022 approving the NBB Regulation of 9 November 2021 on the exercise of external functions by managers and heads of independent control functions of regulated entities
  3. NBB circulars:
    • Communication NBB_2022_34 of 22 December 2022 updating the NBB’s Fit & Proper Manual
    • Communication NBB_2022_19 of 12 July 2022 on the exercise of external functions by managers and heads of independent control functions of regulated entities
    • Circular NBB_2021_27 transposing EBA/GL/2021/06 on the assessment of suitability
    • Circular NBB_2017_21 of 7 July 2017 on loans, credit and guarantees granted to managers, shareholders and related persons
  4. International reference documents:
    • EBA/GL/2021/14 on internal governance => paragraphs 105 to 131
    • EBA/GL/2021/06 on the assessment of suitability

4:123 The activity of a stockbroking firm is characterised by a variety of interests - often converging but just as often diverging or competing - which require appropriate rules.

4:124 Conflicts of interest may arise in the following relationships (non-exhaustive list):

  • between shareholders and the firm;
  • between directors and the firm;
  • between staff and the firm and, by extension, the firm’s customers;
  • between the firm and its customers, as a result of the business model implemented and/or the services and activities offered by the firm;
  • between customers;
  • between the firm and its parent undertaking, a subsidiary or other affiliated undertaking, in the context of intra-group transactions.

4:125 Without prejudice to application of the provisions of the Companies and Associations Code or other applicable rules (investment services, market abuse), two types of conflicts of interest policies should be developed.