Management of Interests Policy
A. Introduction
1. ABDO College (‘the College’) is committed to the effective management of interests in order to avoid conflicts and ensure that its decisions are made in the best interests of ABDO College, ABDO and its members.
2. The College recognises that individuals covered by this policy have diverse interests within the optical sector and society more generally. Such interests will often be beneficial but can also give rise to conflicts.
3. The existence of an actual, perceived or potential conflict of interest does not imply wrongdoing on anyone’s part. However, any private, personal or commercial interests which might give rise to a conflict of interest must be recognised, disclosed appropriately and either removed or properly managed.
4. Individuals to whom this policy applies have an obligation to act in the best interests of the College, to recognise conflicts of interest and to ensure that they carry out their roles in a way which is not, or could not be perceived to be, affected adversely by any other interest.
B. Purpose
6. The purpose of this policy is to:
• assist individuals in identifying any actual, perceived or potential conflicts of interest
• enable the disclosure of conflicts
• provide guidance to those responsible for dealing with conflicts
• assist in the management of conflicts
7. The College’s Chief Executive will be able to provide guidance in applying this policy.
C. Scope
8. This policy applies to College trustees, advisers, tutors, senior staff, contractors and consultants. It also applies to individuals making an application to join the College in any such capacity.
9. For the purpose of this policy, the term ‘conflict’ includes actual, perceived and potential conflicts of interest.
10. A perceived conflict arises where an individual has an interest which a reasonable person would view as likely to compromise the relevant individual’s ability to act only in the College’s best interests. A potential conflict is a situation which could develop into an actual or perceived conflict even though no conflict currently exists. For example, there would be a potential conflict if an individual’s partner works for a firm that provides services which the College does not currently use, but could use in future.
12. Conflicts can involve financial interests, i.e. anything of monetary value including, but not limited to pay commission, consultancy fees, shareholdings connected to any College-related business, equity interests, debt, property, royalties and intellectual property rights.
13. Examples of financial interests that could involve a conflict include a situation where:
• an individual employed by the College is a director or shareholder of a company which provides contracted services to the College
• a College decision results in an individual receiving a benefit from a third party
14. Conflicts of interest may also arise from a non-financial benefit or advantage, including:
• enhancement of an individual’s career, education or professional reputation
• access to information or facilities that could be used by others
• advancement of a cause or reputation
15. For example, a conflict could arise where an individual makes use of information obtained at a Board meeting to assist an organisation for which they work.
16. A conflict can also arise because of an individual’s relationship with or connection to a third party or organisation (a ‘connected person’). Examples of connected persons are:
• close members of an individual’s family
• a business partner or colleague
• anyone whose finances are interdependent with an individual, e.g. where there is a joint bank account, joint mortgage, property held in joint names, where one person is financially dependent on the other or where a person is a joint beneficiary of a trust
• a person with a contractual relationship or otherwise receiving a benefit
D. Disclosure of Interests
17. There are four points when interests should be declared:
• prior to appointment: any prospective individual should be requested to complete a Declaration of Interests form prior to appointment, e.g. on applying to be a Trustee, in order that any relevant issues may be considered;
• annually: interests should be updated and reviewed each year
• as a new conflict arises: new interests should be declared straight away rather than waiting for the next annual declaration
• verbally at any meeting where a conflict may arise: conflicts of interest should be a standard agenda item at the beginning of each relevant meeting. Any new interests should be declared and minuted and any interests of relevance to items on the meeting agenda should be declared so that they can be addressed appropriately.
18. Interests relating to Trustees will be made available on the College website to ensure transparency.
19. If anyone becomes aware of a possible conflict of interest that the relevant individual appears not to have considered, they should bring it to the attention of the Chief Executive.
20. Some personal information about third parties can be held only with their agreement. Generally, the limited information needed to declare a conflict will not require such consent. If consent is needed, it is the responsibility of the individual providing the information to ensure that this consent is given. Should a third-party decline to consent, then it is the responsibility of the individual to nevertheless ensure that a potential conflict is declared. Any declaration where data is held in relation to a third party will be dealt with in a manner consistent with information governance requirements.
E. Management of conflicts of interest
21. Once a conflict has been identified it must be removed or managed. Until the conflict has been resolved in either of these ways, the individual should take no part any discussions or decisions relating to the interest in question.
22. The way in which an individual’s conflict of interest is managed will normally be decided by the person with oversight of the area where the conflict arises, with decisions being informed by appropriate advice. For example, how to deal with any conflicts on the part of College Trustees will normally be dealt with by the Chair of the Trustees, with advice provided by the Chief Executive as the College’s Company Secretary.
23. In deciding how a conflict will be dealt with, the level of conflict will be evaluated, and this involve requesting further details from the individual in question. The decision is likely to be that the interest falls into one of four categories, namely that the interest:
• is not significant and does not create a danger of bias or conflict (Category A)
• creates a significant but not substantial danger of bias, conflict or that others might reasonably think could influence a decision (Category B)
• creates a substantial danger of bias or conflict (Category C)
• creates a severe or substantial conflict that is likely to be recurring (Category D).
24. Once a decision is reached on the severity of the conflict, it will be necessary to decide how it will be managed. Generally, the following will be appropriate:
• Category A – the individual must declare the interest but may take part in the discussion and may vote and be counted in the quorum in relation to any decision-making.
• Category B – it shall be at the discretion of the person responsible for managing the conflict to determine whether the individual may contribute information to the meeting and/or take part in any discussion, but they will not be allowed to vote and will not be counted in the quorum.
• Category C – the individual must leave the meeting at the relevant points and not participate in any related discussions or votes. Steps will need to be taken to ensure relevant information is not made available to the individual.
• Category D – other steps will need to be taken to manage the conflict. The steps required will depend on the particular circumstances, but could include:
o the individual agreeing to obtain consent from the other party creating the conflict, for example his client or employer, that the individual be relieved of his or her obligation to disclose relevant information to that other party where the information was obtained from or relates to the College
o withholding all papers that relate to the conflict from the individual in question
o The College ceases to undertake the activity giving rise to the conflict
o the individual resigning
25. Once a decision on how to manage a particular conflict has been taken, that response may be used as a precedent in the event of similar circumstances arising.
F. Managing Information
26. An individual with a conflict of interest must not be provided with information which enables him or her to obtain any advantage. In particular, the person who is responsible for sending information to the individual prior to a meeting should check the register of interests and take any other reasonable steps to ensure that only appropriate information is sent to an individual with a conflict of interest.
G. Recording Steps Taken
27. In order to protect the interests of individuals and the College, it will keep a record of any interests that are disclosed and the steps taken to manage any conflicts that arise.
H. Review
28. Review of the effectiveness of the policy and compliance with it will be the responsibility of the Chief Executive. The policy will normally be reviewed every three years.
I. Transparency
29. This policy is available on the College’s website.
J. Verification
30. The College may undertake appropriate steps to verify any information provided in compliance with the policy.