Conflict of Interest FAQs

A financial interest is anything of economic value, including a fiduciary relationship with an outside entity. While not an exhaustive list, examples of financial interests include positions such as director, officer, partner, founder, consultant or manager of an entity (whether paid or unpaid); scientific advisory board or technical advisory board membership; salaries; consulting income; stock or stock options (vested or not vested); honoraria; gifts; loans; and travel payments.

Disclosable income does not include monies received from the University of California. It also does not include monies derived from licensing fees or royalty income paid to UC by the research sponsor. Salary paid by the University (including LBNL) is not considered disclosable personal income even if it is derived from support provided by the research sponsor.

Disclosures fall under 4 main categories: Compensated Outside Professional Activities, Sponsored Research, Technology Transfer, and Designated Official Filings. Depending on the kind of disclosure, different interests must be disclosed. In brief:

Compensated Outside Professional Activities – all employees, including part-time employees and faculty members, must disclose compensated outside professional activities, including but not limited to employment, positions of ownership and/or management, and equity holdings

Sponsored Research – PIs and others with responsibility for the design, conduct or reporting of research must disclose interests in sponsors of research, and for some federally sponsored research, interests in related entities

Technology Transfer – inventors must disclose interests in potential licensees of Laboratory technology

Designated Official Filings – employees who are Designated Officials under UC’s Conflict of Interest code must disclose interests upon assuming office, annually, and upon leaving office. Post-employment restrictions apply.

A financial conflict of interest is a situation in which an objective layperson might perceive that an individual’s financial relationships may compromise the individual’s professional judgment in performing their responsibilities to conduct research, procure goods or services, or otherwise make decisions on behalf of the Laboratory. For example, an investigator may have a financial conflict of interest if he or she is a consultant to the company sponsoring research in his or her laboratory. Another example is an employee who wants to purchase services from a company in which he or she has significant equity.

Not necessarily. Some argue that any financial interest in a company automatically puts the individual into a situation where there is a conflict with his or her research responsibilities. Others believe that some financial interests are so minimal and/or inconsequential that they do not constitute conflicts of interest. It is important to note that:

• Some financial interests fall below the thresholds for reporting.
• Some reportable financial interests do not require further action because they are considered so inconsequential that they are unlikely to influence an investigator’s behavior. In such cases the COIAC will recommend that research support be accepted with no further action.
• Even if a financial interest is determined to constitute a significant conflict the COIAC tries to find ways of managing, reducing or eliminating the conflict.

The Laboratory Conflict of Interest Advisory Committee (COIAC) is a panel of scientists from disciplines across the Laboratory. They review disclosures of financial interests that have the potential to represent significant conflicts of interest that must be eliminated, reduced or managed. The Committee determines an appropriate strategy for management of any significant conflict, and makes recommendations to the Laboratory Deputy Director. Disclosures of financial interests are public documents available to members of the public and to the Department of Energy upon request.

If the Committee determines that the disclosed financial interests constitute a real or perceived conflict of interest, they will recommend actions designed to eliminate, reduce, or manage the conflict. In some instances, the Committee may simply recommend disclosing the interest in all publications and presentations. Depending on the facts, the Committee may also recommend other measures such as divestiture of all equity interest in the sponsor or elimination of any consulting arrangement with the sponsor. Additional measures may include the appointment of an ad hoc oversight committee to provide ongoing monitoring of the issue.