LMB Insurance Inc. applies strict confidentiality and compliance standards, ensuring transparent management of conflicts of interest that may affect its clients and partners.
Definition and Identification of Conflicts of Interest:
A commercial conflict of interest arises when a mandate with a client results in an interest, real or perceived, that could harm the interests of LMB Insurance Inc. or another client.
Scenarios include:
· Conflicts between LMB Insurance Inc. clients
· Conflicts between clients and insurers
· Conflicts between LMB Insurance Inc. and insurers
The analysis of conflicts of interest is based on several factors, including the possibility of financial gain or loss to the detriment of a client, or the diverging interests of several parties in the same matter.
Managing and Preventing Conflicts of Interest:
LMB Insurance Inc. takes a proactive approach to identifying and resolving these conflicts. This includes:
· Assessing the risks associated with providing services or implementing products.
· Classifying high-risk situations that could generate a potential conflict.
· Defining communication protocols to effectively manage conflicts.
When a conflict is identified, it is addressed promptly, and the relevant parties are informed.
Possible solutions include:
· Disclosure of relationships to the parties involved.
· Obtaining consent from affected clients.
· Establishment of information barriers (ethical boundaries.)
· Refusal of a mandate or investment opportunity.
Transparency and Verification
LMB Insurance Inc. maintains detailed records of the measures taken to manage conflicts of interest, including client communications and contractual disclosures.
An internal audit is conducted annually, or more often, and each time a potential conflict is identified, ensuring continuous improvement of procedures and alignment with best practices.
For any questions regarding conflict-of-interest management, contact LMB Insurance Inc. today.