How can conflicts of interest be addressed, particularly in relation to the role of professional advisers, auditors and investment analysts?
The Principles advocate not only full disclosure but also an explanation by parties how they are managing any conflicts of interest. Far from being simply aimed at providing volumes of information, disclosure should be aimed at increased transparency. Rating agencies, analysts and investment banks should avoid conflicts of interest which could compromise the nature of their advice. The Principles explicitly acknowledge that auditors have duties to respect: they should be accountable to shareholders and exercise due professional care when conducting an audit. Auditors should be wholly independent and not be compromised by other relations with the company.
