Cases of financial conflicts of interest

On accepting certain offices or filling in certain positions, the issue of financial conflict of interest may arise. Fiduciary asset management may offer a suitable solution also in such cases as you can rest assured about the safety of your working property without giving up the challenges of the task undertaken.

Pursuant to the provisions of the currently effective labour legislation, employees during their term of employment are not allowed to engage in conduct that may directly and actually harm their employer’s reputation or rightful economic interest. Risking the employer’s economic interests may mostly occur when an employee holds an interest in an undertaking that may, by virtue of its scope of activities or market position, pose danger to the employer’s position in the economic competition or chances, or may in any way put it at a disadvantage. In case of successfully operating undertakings, the owner’s person gives rise to concerns when employed by another undertaking even if he/she is only a silent partner in his/her own undertaking – there is reason to assume that he/she owns a share in his/her own undertaking because he/she intends to increase its revenues through the business profits of the undertaking. In case of an employee in a management position, the Labour Code has even more strict provisions in place: it bans the employee from establishing any further employment relationship and from acquiring a business share in an economic organisation that is also engaged in identical or similar activities as the employer’s or that maintains a regular economic relationship with the employer

Fiduciary asset management offers an effective and reassuring solution also in such cases: the asset (which may even be one or more undertakings) along with all of its rights and obligations is transferred to the ownership of the entrusted asset manager, whereas the settlor may exclusively receive a share of the business profits of the undertaking from that point on – if he/she issues such directions – as a beneficiary, while not participating in the management and work processes thereof. Our staff hold years of experience in asset management, as well as a complete legal, financial and administrative background, and they are capable of ensuring, even in such cases, adequate management, operation and prosperity of the undertaking or other asset transferred for asset management.