version | changes | approval date |
---|---|---|
1.0 | initial policy | 2019-01-28 |
1.1 | rephrasing | 2020-05-24 |
This policy applies to the board members and all persons affiliated to and acting on behalf of WPIA.
Persons affiliated to and acting on behalf of WPIA are:
Later changes to the scope can be adopted and state regulations should be taken as far as possible without contradicting this policy.
The WPIA’s board and all persons affiliated to and acting on behalf of WPIA aims to ensure that they are aware of their obligations to disclose any conflicts of interest that they MAY have, and to comply with this policy to ensure they effectively manage those conflicts of interest as persons affiliated to and acting on behalf of WPIA.
The purpose of this policy is to help board members and all persons affiliated to and acting on behalf of WPIA effectively identify, disclose and manage any actual, potential or perceived conflicts of interest in order to protect the integrity of WPIA and manage risk.
A conflict of interest occurs when a person’s personal interests conflict with their responsibility to act in the best interests of the charity. Personal interests include direct interests as well as those of family, friends, or other organisations a person may be involved with or have an interest in (e.g. as a shareholder). It also includes a conflict between a board member’s duty to WPIA and another duty that the board member has (e.g. to another charity). A conflict of interest MAY be actual, potential or perceived and MAY be financial or non-financial.
Conflicts of interest can arise both internally and externally.
Internal conflicts arise in cases of:
External conflicts arise in cases of:
These situations present the risk that a person will make a decision based on, or affected by these influences rather than in the best interests of the charity and MUST be managed accordingly.
This policy has been developed because conflicts of interest commonly arise, and do not need to present a problem to the charity if they are openly and effectively managed. It is the policy of the WPIA as well as a responsibility of the board, that ethical, legal, financial or other conflicts of interest be avoided and that any such conflicts (where they do arise) do not conflict with the obligations to WPIA.
WPIA will manage conflicts of interest by requiring board members and all persons affiliated to and acting on behalf of WPIA to:
The charity MUST ensure that its board members are aware of the legal requirements as stated in Austrian WAG 20181 and the Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament2 and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that directive, and that they disclose any actual or perceived material conflicts of interests as required by that directive.
reporting any actual, potential or perceived conflict of interest to the aforementioned established System of the board.
Examples and solving appoaches:
Once an actual, potential or perceived conflict of interest is identified, it MUST be entered into WPIA’s register of conflicts of interests, as well as being raised with the board. Where all of the other board members share a conflict, the board should ensure that proper disclosure occurs.
The register of conflicts of interests MUST be maintained by an appointed member, and record information related to a conflict of interest (including the nature and extent of the conflict of interest and any steps taken to address it).
Only members of the WPIA SHALL have access to the disclosures. Measures and model decisions made as a result of these disclosures are to be published in the internal rules and regulations.
Each person bound by this policy should act in favour of the rules and bylaws of the Certificate Authority.
In deciding what approach to take the board will consider whether the conflict needs to be avoided or simply documented whether the conflict will realistically impair the disclosing person’s capacity to impartially
The approval of any action requires the agreement of at least a majority of the board (excluding any conflicted board member/s) who are present and voting at the meeting. The action and result of the voting will be recorded in the minutes of the meeting and in the register of conflicts of interests.
When deciding on the necessary steps, the aim SHOULD be to prioritize the interests of the bearer of certificate / fellows, to whose detriment a conflict of interest, with the interests of the association and the persons working for them, and to treat them equally with the interests of other bearer of certificates / fellows.
The board (excluding the board member disclosing and any other conflicted board member) MUST decide whether or not those conflicted board members should:
In exceptional circumstances, such as where a conflict is very significant or likely to prevent a board member from regularly participating in discussions, it MAY be worth the board considering whether it is appropriate for the person conflicted to resign from the board.
The board MUST decide whether or not those conflicted persons should:
In cases, as the conflicted person is member and representative of the WPIA, it MAY be worth the board considering whether it is appropriate to revoke the conflicted persons power of representation.
If the board has a reason to believe that a person subject to the policy has failed to comply, board MUST investigate the circumstances.
If it is found that this person has failed to disclose a conflict of interest, the board MAY take action against them. This MAY include seeking to terminate the persons relationship with the charity.
If a person suspects that a board member has failed to disclose a conflict of interest, they MUST discuss with the person in question, notify the board, or the person responsible for maintaining the register of conflicts of interests.
Contact: board (at) wpia.club