Document Type : Original Article
Highlights
Summary of Article
Conflict of interest in recent years has been one of the prominent issues in public and governmental institutions, which is referred to as the gray area and an opportunity to commit corruption. One of the institutions that has become a source of conflict of interest in recent years is the stock exchange. Securities are a means of aggregating micro-capital to facilitate investment by those in need of cash. Of course, it should be said that the regulation of the capital market has been done and is under supervision, and the transactions in it are approved by the Stock Exchange Organization and other competent authorities.
Due to the need for a clear legal framework on the stock exchange of one of the most important financial institutions, in our country, several laws have been approved on the stock exchange, but now the law "Securities Market of the Islamic Republic of Iran" approved in 1984 governs this area. Is. This law has advantages over previous laws and regulations, such as regulating the primary market, diversifying financial instruments, and overseeing the pillars and institutions operating in the capital market.
The main question of this research is whether the rules and regulations in the field of stock exchange include rules for the prevention and management of conflict of interest, and if so, what examples of conflict of interest management do these norms cover? Our initial hypothesis is that, given the passage of the Securities Market Act in recent years, traces of conflict of interest management can be found in this law and its related regulations; However, the need to integrate these laws and regulations and anticipate new examples of conflict of interest management is one of the shortcomings of the legal system that needs to be addressed.
Conceptual limitation of conflict of interest management
Conflict of interest is a situation in which the actions and decisions of professions based on primary interests are adversely affected by secondary interests. Primary interests refer to public interests such as the protection of public welfare and the professional and institutional duties of the public official, and secondary interests often include personal interests such as financial interests; But it is not limited to financial interests, and the demands of relatives and friends are also subject to secondary interests, which in English and French law are also referred to as abuse of power and are subject to judicial review. Conflict management policies focus more on interests and financial relationships; Because these relationships and interests are more measurable than other interests; Thus, a conflict of interest occurs when a public official in charge of the performance of duties by the people has private interests that these private or other interests conflict with the public interest, and this affects the impartiality and purpose of performing public duties or with the aim of influencing performance. It becomes.
The most important tools to prevent conflicts of interest are: absolute prohibition of gift acceptance, regulation or restriction of political activities, prohibition of employment and hiring of relatives, restriction of membership in boards, non-governmental organizations, corporations and other non-profit organizations, non-profit affiliation or non-profit affiliation. Personal, non-acceptance of a second job potentially in conflict with the public duties of official authorities, commitment or association with associations or racial, ethnic, or religious occupations, disclosure of public information, prohibition of representation and work for foreign countries, declaration of personal income and assets , Declaration of family assets and income, Declaration of personal interests related to contracts, Declaration of personal interests related to decision making, Restrictions and control of transactions and occupations or activities of non-governmental organizations after employment, Restriction and control of simultaneous external appointments such as employment in political, governmental or governmental organizations.
The role of transparency and disclosure in managing the conflict of interests of the stock exchange
Public officials should be aware of the situation of conflict of interest and prevent it from occurring, and if it occurs, report it to the supervisor as soon as possible and make their final decision without conflict of interest; So that these decisions do not cause conflicts of interest. Transparency is a necessary element of conflict of interest management, which in fact provides information to citizens and stakeholders clearly and simply. This component allows rational and impartial decisions to be made. One of the most important issues of disclosure and transparency can be considered the declaration of income and assets of officials. In countries with a view to accumulating corruption, public officials are usually required to declare their wealth and assets.
The role of protection of confidential information in the management of conflicts of interest on the stock exchange
Confidential information received from the public by agents should not be disclosed except to competent authorities and should not be used as a means of personal gain. It is the duty of employees to refrain from disclosing confidential information to family, friends or other former colleagues; Because there is always a fear of misuse of people's personal information for or against other people, and this ban is due to the non-exchange of private and appropriate information of the people, which is exploited and misused for personal interests, both economic and non-economic. Benefits for these employees or other persons to be considered. Disclosure of confidential information is also prohibited in other countries; Because the private sector is always looking to make more profit and reduce costs, and therefore, one of the ways to achieve this goal is to access government decision-makers and buy their information.
The role of neutrality in managing the conflict of interests of the stock exchange
The main basis of neutrality should be considered in the equality of individuals in relation to each other and in relation to public officials before the law. Different countries have enacted various laws and regulations to ensure neutrality and, consequently, to prevent corruption. Political influence in the pillars of the stock exchange organization and irregular transfer of managers of this institution can be a violation of independence and, consequently, the departure of this institution from the path of neutrality.
Result
Due to the dispersion and non-revision of these laws and regulations, it seems that the legislator should formulate and approve a comprehensive law on prevention and management of conflict of interest in the stock market to minimize corruption and conflict of interest in this area and shareholders and companies active in the stock market. To operate in the stock market with a comprehensive view of conflict of interest situations. For this purpose, codes of professional conduct of policy makers, managers, employees and brokers can be developed and approved to anticipate situations of conflict of interest and reciprocal actions. In addition, we should see a glass exchange in which the decision makers of this market make decisions with more transparency in order to provide the ground for people to monitor this area through the media and press and to minimize the abuse of authority in the stock exchange institution. In this case, it is possible to significantly reduce the conflict of interest and its management in the stock exchange.
