What are 'financial interests' under the LBNL Conflict of Interest Policy?
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.
Who must disclose? What financial interests must be disclosed?
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.
What is a financial conflict of interest?
Is a financial interest automatically a conflict of interest?
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.