LCP believes that potential or actual conflicts of interest must be identified, understood and managed effectively. Our Conflicts and Ethics Committee is responsible for developing and maintaining our policies in relation to conflicts of interest. Issues around potential or actual conflicts are brought to this committee and discussed with senior and experienced partners in the firm.
We carry out regular awareness training on professionalism and ethical issues that includes practical discussions of managing conflict situations and identifying problematic situations in advance.
We always check for potential conflicts of interest carefully before accepting a new client appointment and will not accept appointments unless we and the clients concerned are confident that any potential conflicts can be managed appropriately.
Conflicts of interest can arise in various circumstances, for example:
- When advice is provided to a pension trustee board and the sponsoring employer, if transparent arrangements are not in place to deal with each party's needs.
- When advising on the selection of a provider (such as an investment manager or insurance company) for whom we provide separate consultancy services.
We are experienced at providing advice in such situations and have rigorous and robust procedures for identifying any such conflicts of interest. Where necessary, we agree structures and working practices with the client that offer the appropriate degree of separation.
We do not provide fiduciary management services, whereby trustees delegate or outsource the majority of investment decisions. We provide guidance and advice and do not manage money for clients or offer our own investment products.
We do not advise investment managers on their investment services (although we may collaborate with managers, on a non-remunerated basis, to design products that we believe will be of value to our clients). This enables us to offer clients unbiased, unconflicted advice on the selection and monitoring of investment managers.