Mahdi Delbari, Investment Manager of Health Insurance Capital Management Company, a Graduate of first course of DBA in Islamic finance gave a lecture on conflict of interest in financial institutions on 19 Oct. 2021.

He said the issue of conflict of interest is important because many people are unknowingly involved in a conflict of interest. In financial institutions, there are two groups active in the financial markets. First: a group that has surplus resources and is looking for a place to invest, and vice versa. Second: there are people who need resources. These two groups play an important role in the financial market and usually financial institutions play an intermediary role between these two financial groups.

The lecturer stated that when we say financial institution, we mean the capital market law, including many large institutions, such as pension funds, portfolios, etc., all become financial institutions, and when we say a financial institution it means intermediaries as they are defined in capital market law.

Delbari stressed that in practice these institutions are located between two groups: one group of people having surplus resources and the second group is looking for resources. In fact, if they do not know their job duties in order to meet which group’s interest and even a third face is found between the interests of the company in which they operate or their own personal interests, this is a very important situation, which we call it conflict of interest.