By Charlotte GAUCHON
The 27 March 2025
Banking institutions often wear many hats: lender, shareholder, securities distributor, advisor, etc. This inherent versatility creates fertile ground for the emergence of conflicts of interest. High-profile cases such as the Enron scandal in the United States and the LVMH v Morgan Stanley dispute in France have painfully highlighted the considerable risks associated with inadequate prevention and management of such situations. Understanding the nature of these conflicts and the mechanisms put in place to deal with them is essential for both clients and the institutions themselves. Notion and issues of conflicts of interest Legal definition and regulatory framework A conflict of interest arises when a person or entity is faced with conflicting demands between their own interests and the duties they owe to others, or between the divergent interests of several parties to whom they owe a duty of loyalty. In the banking sector, this manifests itself...
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