Case study/report: InstructionsEach student will write an individual report about issues raised in a...

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Case study/report: InstructionsEach student will write an individual report about issues raised in a Harvard Business School case study on managing client conflicts (Nanda, 2005). The case study is provided on iLearn.The report is to address the following specific questions:			? What types of conflicts of interest are faced by investment professionals? How do they are arise? Discuss with reference to recent examples in the investment industry.						? How do these conflicts impact on service providers and their clients?						? What role does regulation play in managing client conflicts?						? What actions have investment firms taken to identify and control conflicts of interest?						? How successful have these actions been? Where have they been inadequate?						? How can industry practices in this area be improved in the future?				The report must be your own work. All information sources used in the preparation of the report must be acknowledged appropriately.				Grading				The report will be graded against the following criteria:						? Relevance—the report directly answers the above questions						? Knowledge and understanding of the issues						? Critical, analytical and integrative thinking						? Evidence of the use of appropriate materials (e.g. books, journal articles)						? Structure and presentation—the report is well organised and ideas are expressed				clearly and concisely				Length and format				The maximum length of the report is 4 pages (including tables, figures, references and appendices). Reports should be 1.15-spaced, size 12 points, font Times New Roman. Use margins of at least 2.54 cm (1 inch).				Submission details				The report is due on 12 May 2017 at 5:00 p.m. No extensions will be granted. There will be a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission–20% penalty). This penalty does not apply for cases in which an application for disruption of studies is made and approved.submitted by a student is final and an originality report will be generated immediately. Students will not be permitted to resubmit the report.		Suggested references				Australian Securities and Investments Commission (2016),‘Culture, conduct and conflicts of interest in vertically integrated businesses in the funds-management industry’, Report 474, March.				Financial Industry Regulatory Authority (2013),‘Report on Conflicts of Interest’, October.				Financial Services Authority (2012),‘Conflicts of interest between asset managers and their customers: Identifying and mitigating the risks’, November.				Nanda, A. (2005),‘Managing Client Conflicts’, Harvard Business School Case No. 9-904- 059, 24 March.

Robert · Accepted Answer

Assignment Title
Student Name
Course Name
Instructor Name
Date
 1 
Introduction 
Conflicts of interest are increasing in every industry especially it is a great challenge for 
the investment professionals. There are various types of conflicts that are faced by the 
professionals resulting in discharging their duties to the clients. Regulators have developed 
various regulations and compliance that will enable the professionals in managing their conflict 
in an efficient manner. In this report, there is a detailed discussion about various conflicts that are 
faced by the investment professional, their impact, regulations in handling them, decisions of the 
professionals and their effectiveness and recommendation.  
Types of Conflicts 
There are different types of conflicts faced by the investment professionals. Conflict of 
duty it arises when the request of one client is affecting the privacy of the other client’s 
information in such situations there is a violation of the fiduciary duty of the professional 
(Nanda, 2005, p. 1). Conflict of rules is another major conflict that is faced by the investment 
professionals while they are discharging their duty to their customers. When there is more 
demand for various services, there will be more pressure to both narrow and broad norms that is 
creating more conflict in discharging their service at multi-level (Nanda, 2005, p. 4).  
Conflict of norms is created while making client selection. There are many situations 
where the investment professionals accept the clients and face more trouble due to various norms 
instead of obtaining more clarification from the client before binding in agreement (Nanda, 2005, 
p. 6). Conflict of service is another major conflict when the investment professional is rendering 
more than one service to the client. Vertical conflicts arise when the professional is involved in 
the informational role for one client and advisory role of another client from whom the client 
requires information. Similarly, when there are multidisciplinary services provided by the 
investment professionals, there is more contradictions and conflict of services arises creating 
more challenge (Nanda, 2005, p. 8). 
General conflicts are those that arise while discharging various services to the clients and 
they are not specific to a client or a business line. Compliance and supervision conflicts arise 
when a professional handling more than one client service and not making an appropriate 
allocation of time to all the services (ASIC, 2016, p. 41). Research related conflicts arise when 
there is increasing pressure from the clients to provide all the required reports at the same time. 
Banking and capital wealth give rise to various conflicts that arise as it requires establishing the 
contact with both sides of bidding and buy and sell side of the transaction (ASIC, 2016, p. 42).  
Impact of Conflicts on Services 
The conflicts are creating more trouble to the investment professionals in discharging 
their professional service.

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