Conflicts of Interest Policy Statement Overview

1. Wide Bay Australia FSRA Licensee Obligation

The Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004 includes a provision that all financial services licensees under the Financial Services Reform Act must:

“have in place adequate arrangements for the management of conflicts of interest that may arise wholly, or partially, in relation to activities undertaken by the licensee or a representative of the licensee in the provision of financial services as part of the financial services business of the licensee or representative.”

The obligation adds to the existing general obligations imposed on licensees under section 912A of the Act and the fiduciary obligations licensees may owe to their clients.

1.1 What are conflicts of interest?

ASIC defines conflicts of interest as ‘circumstances where some or all of the interests of people (clients) to whom a licensee and it’s representatives provides financial services are inconsistent with, or diverge from, some or all of the interests of the licensee or its representatives. This includes actual, apparent and potential conflicts of interest’.

A conflict of interest generally arises where an individual has a personal interest which may influence how they perform their duties and responsibilities to Wide Bay Australia Ltd (Wide Bay).

This includes using any information obtained as a representative of Wide Bay, which includes Directors, employees, agents and their employees, which is not available to the general public, for personal gain.

All representatives should avoid taking part in any dealings that place them in a position of conflict with Wide Bay’s interests.

1.2 ASIC’s Policy Statement 181 Licensing: Managing conflicts of interest

PS181 sets out the minimum arrangements licensees (including their representatives) must have had in place to comply with the conflicts management obligation. ASIC states that it expects licensees to control, disclose and, where necessary, avoid conflicts of interest.

As part of managing conflicts, ASIC expects Wide Bay and other licensees to identify, assess and respond to the conflicts of interest that arise in their business.

2. Controlling and avoiding conflicts

In controlling conflicts of interest, ASIC expects that Wide Bay will have arrangements in place to enable us to:

• Identify the conflicts of interest relating to our business;
• Assess and evaluate those conflicts; and
• Decide upon, and implement, an appropriate response to those conflicts.

3. Disclosing conflicts

ASIC requires that Wide Bay ensures that clients are adequately informed about any conflicts of interest that may affect the provision of financial services to them. This means providing clear, concise and effective disclosure so that clients can make an informed decision about how the conflict may affect the relevant service.

The conflicts of interest obligation applies equally to services provided to retail and wholesale clients, although the level of disclosure required may be less detailed for our wholesale clients.

CONFLICTS OF INTEREST POLICY STATEMENT

1. Policy on Avoiding Conflicts of Interest

1.1 Honesty & Integrity

All representatives shall act honestly and with integrity in all their dealings with Wide Bay. This includes engaging in and promoting honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships.

Representatives will not discriminate on the grounds of people’s race, religion, gender, marital status or disability.

Representatives will not make promises or commitments that Wide Bay does not intend, or would be unable to honour.

Representatives’ conduct, at all times, will be such that their honesty is beyond question.

Representatives will adhere to the truth, and not mislead directly or indirectly nor make false statements, nor mislead by omission.

1.2 Use of Wide Bay Information

Representatives will take all reasonable measures to protect the confidentiality of non-public information obtained or created in conjunction with their activities and to prevent unauthorised disclosure of such information unless required by applicable law or regulation or legal or regulatory process or with the consent of Wide Bay.

Representatives must not:

• use Wide Bay’s name, or any confidential information obtained during their employment or appointment as an authorised representative with Wide Bay (regardless whether this information is available to the general public) for personal gain or for the benefit of others;
• directly or indirectly communicate price sensitive information about Wide Bay’s products to a person who is likely to deal or trade in these products.

1.3 Positions of Conflict of Interest in Wide Bay Matters

Representatives must not:

• allow any personal relationships with customers or third parties to interfere with their duties to Wide Bay;
• manage any customer relationships where they have an interest or potential to obtain a personal benefit from the relationship; and
• knowingly cause or direct Wide Bay to acquire goods or services from vendors or organisations in which they have an interest or under arrangements in which they will obtain a personal benefit or gain.

A representative will only prepare any of Wide Bay’s security or other legal documents for customers or any other person, if this is in the normal course of their duties.

If a representative becomes aware of any matter which may result in them being in an actual or perceived conflict of interest, they must fully disclose this to their manager, or refer the situation to the FSRA compliance section.

A representative must not use any insider information to gain any professional or personal advantage.

A representative must disclose to their manager or the FSRA compliance section, any material interests they have in Wide Bay’s customers or Wide Bay’s contracts, transactions or other commercial arrangements upon becoming aware of the interest.

1.4 Acceptance of Gifts

In the course of their employment with Wide Bay, if a representative receives money (whether as a gift or commission) from outside parties involved in Wide Bay’s business, they must return this money and immediately report the incident to their manager.

If a representative receives a gift or invitations to entertainment (exceeding $100 in value) in the course of their employment at Wide Bay, they will pass on same to a senior manager who will distribute it to the appropriate personnel at his or her discretion.

A representative will not provide or accept any entertainment which, to a reasonable person, will seem inappropriate or abnormal.

1.5 Non-Work Related Activities

A representative will not:

• participate in any business activities; or
• enter into any business arrangement; or
• accept any employment with another business outside their employment with Wide Bay;

that could:

• have an adverse impact on their ability to carry out his/her responsibilities and duties to Wide Bay;
• cause a conflict of interest; or
• conflict with Wide Bay’s corporate image or business activities.

A representative will not become or act as an executor, administrator, trustee or attorney for any customer of Wide Bay who is not a member of their immediate family or associated entities without Wide Bay’s consent.

If a representative is nominating or running for any government office (whether it is local, State or Federal government), they will disclose this to a senior manager.

1.6 Employee Personal Banking

Representatives will ensure that their own accounts (which includes their deposits, loans and other facilities) with Wide Bay are maintained in accordance with Wide Bay’s policies and procedures, and they will not process their own transactions.

If a representative is about to undertake any Wide Bay financial transaction on their own behalf and is unsure whether a conflict of interest or a breach of policy or risk exists, they will refer the matter to their manager before undertaking the transaction.

A representative will only personally operate on accounts of public bodies, churches, societies, and clubs etc held at Wide Bay only if the account requires joint signatures with other office bearer(s) unless consent has been received from a senior manager.

A representative will not borrow money for him or her self from a Wide Bay customer in any circumstances unless it is from an associated family member.

A representative will not lend money to a Wide Bay customer on their own behalf in any circumstances unless it is to an associated family member.

A representative will not approve or process family member’s loans without consent from the Loans Manager.

1.7 Incentive & Remuneration Practices

Wide Bay will ensure that their incentive and remuneration practices for all representatives are consistent with the provision of financial services in a fair, honest and professional manner.

Incentive and remuneration practices that place the interests of the business or its representatives in direct and significant conflict of those of their clients will be avoided (not just disclosed).

2. Strategies to Manage Potential Conflicts

It is Wide Bay’s policy that all representatives will be forwarded a copy of this policy and a ‘Declaration of Conflict of Interest’ form on an annual basis.

Each representative is to review the policy and if the representative believes that any business or personal matter is, or could be, a conflict of interest or potential conflict of interest involving his/her role, they must complete this form providing full details.

The declaration is to be forwarded to the FSRA Compliance area.

3. Conflict of Interest Handling Process

Where a potential conflict of interest is declared or perceived, the FSRA Compliance section will pass on this to the Executive Manager/Director and the Chief Financial Officer who will investigate the matter to identify the nature of the potential conflict and to determine a course of action be taken to manage the matter.

The Managing Director will be informed of the issue and if identified as a potential conflict, then it will be recorded in the ‘Conflicts of Interest Register’ to be brought to the attention of the Board of Wide Bay.

Where the conflict involves either the Executive Manager/Director or the Chief Financial Officer then the Managing Director will be notified in the first instance.

4. Potential Conflict of Interest Complaints

All complaints regarding conflict of interest are to be directed to either the Executive Manager/Director or the Chief Financial Officer. They will communicate directly with the individual raising the concern and investigate the matter to determine the nature of the complaint and determine options for appropriate courses of action.

Potential courses of action will be discussed with the complainant to determine if an acceptable resolution can be achieved.

Where a resolution is not reached in a timely manner and the complainant is concerned that the potential conflict of interest still exists, the matter will be referred to the Managing Director/Board of Wide Bay for determination.

Where referral to the Board fails to reach an acceptable resolution to the complainant’s satisfaction, the complainant will be informed in writing of Wide Bay’s position and that they can refer the matter to Wide Bay’s external dispute resolution scheme, Financial Co-operative Dispute Resolution Scheme (FCDRS).

All stakeholders involved with the potential conflict of interest complaint will be kept informed in writing of any actions relevant to the complaint.

5. Status of Policy

This policy will be reviewed annually, or more frequently if changes to legal or regulatory requirements dictate.

Each representative is responsible for ensuring that they comply with this policy.