Policy & Procedure for the Management of External Interests & Potential Conflicts
1. Introduction
The University acknowledges that many staff will have external interests and that this may lead to
potential conflicts of interest. The purpose of this policy is to outline the situations when an external
interest should be declared and to provide a framework to manage any conflicts that arise.
The University mandates a three-fold approach to managing any conflict of interest:



External interests must always be disclosed
Any conflict should be managed to the benefit of the University
When necessary the activity may be prohibited to protect the interests of the University.
This policy forms part of the University’s Financial Regulations and all University employees must comply
as a condition of their employment. If an employee is uncertain as to how the policy may affect them, they
should contact the Director of Research and Enterprise Services for advice.
2. Identifying an External Interest
For the purpose of this policy an external interest includes the following:
(i)
Any official position in an organisation which carries decision-making, legal and/or financial
responsibilities and which undertakes activities which may potentially have, or be perceived to have,
a relationship with the University.
(ii)
Any position in an organisation which undertakes teaching or research
(iii) Any position undertaken during their normal University working hours.
(iv) Any direct or indirect financial interest in an external organisation (excluding as a shareholder in a
public company)
(v)
Any personal / non-financial interest in an external organisation
(vi) Any conflict of loyalties between the University and another organisation or person
(vii) For the avoidance of doubt, this includes shareholdings in University spin-out companies or other
companies with which the University has a relationship. The size/value of the shareholding is not
required, only the company name
It explicitly excludes:
(i)
Positions in voluntary organisations where there is no time commitment in normal working hours,
or any realistic possible relationship between the organisation and the University.
(ii)
Any appointments, such as Justice of the Peace, defined as Public Duties in the Special Leave Policy
http://www.ncl.ac.uk/hr/assets/documents/leave-special-june-2015_jh.pdf
There will be occasions where interests not specifically covered above may lead to a conflict of interest. In
these cases, the primary obligation rests with the employee to recognise situations in which they have a
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relevant external interest and to disclose it at the earliest opportunity. An employee must always disclose an
activity where it may;

Present an actual or potential conflict of interest, or

Present an actual or potential conflict of commitment, or

Be relevant to a University decision (for example, during a committee meeting).
Where the context requires, references to an employee’s interests shall be understood as including individuals
with whom the employee has a close personal or business relationship. Any external interest must be declared
and included in the register of external interests - see the procedure below.
3. Accepting an External Interest
Before accepting a new external appointment (or where there is a significant change to an existing
appointment) staff should consult with their Head of Unit who will determine whether it is acceptable for
the member of staff to accept the external interest. In certain circumstances where the commitment in
time is substantial it may also be necessary for the University to be financially compensated. Such
agreements shall be approved under the University’s Delegation of Authority regulations.
4. Declaring an External Interest
4.1.
Updating the Register of External Interests
The following individuals must complete the register of external interests in the MyImpact system:
 Members of Council, Senate and their formal committees including Executive Board.
 All Heads of Unit
 All research active staff
 Any staff member who holds an (external) directorship, trusteeship or senior position
 Any staff member regardless of grade with an external interest (defined by this policy)
The register should be completed / updated at all of the following points:
 On appointment to an eligible post at Newcastle University
 As part of the individual’s Performance Development Review (PDR)
 Within 21 calendar days of commencing a new external activity / appointment
 On request by the relevant Head of Unit / senior manager
The register and the ‘Declaration Statement’ must be completed by all relevant individuals annually, even if
there has been no change to the declared interests. If a member of staff has no external interests, a ‘nil
return’ must still be made.
A summary report showing external interest information will be provided to the appropriate Head of Unit at
the start of each academic year (and on request). The report will show all relevant staff and the overall
completion rate within the unit. It is the responsibility of the Head of Unit to ensure that all the relevant staff
have updated the register within the last 12 months.
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4.2.
At University Meetings or During University Decision-making Processes
Members of staff are required to declare any relevant interests at University meetings or when taking part
in any University decision-making processes. Once declared the Chair of the meeting or ‘owner’ of the
decision-making process, shall then determine whether the individual should continue to be involved. In
cases where the Chair or decision owner declare the interest, the other members will determine their
suitability to continue.
Any declared interest, if not already recorded must be added to the register of interests within 21 calendar
days.
5. Identifying a Conflict of Interest
A conflict of interest is a set of circumstances that creates a risk that an individual’s ability
to apply judgement or act in one role is, or could be, impaired or influenced by a secondary
interest. It can occur in any situation where an individual or organisation (private or
government) can exploit a professional or official role for personal or other benefit.
National Audit office Conflicts of Interest Report 2015
An external interest is considered to have become a conflict of interest when it meets the definition above.
For clarity, where there is any additional personal remuneration (actual or anticipated) or benefit to an
employee other than University salary from any activity this will always be considered to give rise to a
conflict of interest. In such cases the employee will not be entitled to determine the acceptance or
otherwise of the arrangements for an activity without the explicit permission of their line manager.
Where a conflict of interest is identified, it must be declared and the procedure below must be followed.
6. Managing a Conflict of Interest
All University business transacted with the external organisation involving the conflicted individual must be
overseen by another member of staff. This other staff member is nominated by the Head of Unit and must
have no financial or other interest of their own and will ordinarily be a Grade G or above. This nominee is
responsible for managing the conflict to the University’s advantage and for reporting back to the Head of
Unit.
7. Right of Appeal
If a member of staff wishes to appeal the decision of their senior manager then they may do so in the first
instance with the Director of Research & Enterprise Services. If the matter can still not be resolved to the
satisfaction of all parties then the matter will be resolved through the University’s Grievance Procedure.
Dr James Callaghan
Director of Research & Enterprise Services
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Appendix 1 – Examples (Rewrite as FAQs as web content)
By way of examples, conflicts of interest can include:
a)
Where a member of staff has interests in a spin-out company related to their University activities;
b)
A financial interest held by an individual in an external enterprise engaged in activities closely
related to that individual’s line of research in the University;
c)
A personal involvement in any company which has a contractual relationship to the University, or is
in the process of negotiating a contract with the University;
d)
Over-dependence on a particular company for research funding – which may result in that company
either formally or informally influencing the direction of the research or dissemination of results;
e)
Payment of fees to members of staff from University accounts arising from contracts with sponsors
of research or other clients;
f)
Involvement or financial interest in research or an enterprise which will benefit a close friend,
relative or partner.
g)
Time spent on activities for another party during normal working hours.
These categories are intended to be illustrative and are not exhaustive.
To assist members of staff the following activities are not, normally allowable:
1. The University employee acting as sole academic supervisor for an industry-funded student where
the employee concerned has a financial interest in the sponsoring company.
2. The University employee taking any financial stake, or holding a formal position in a student-run,
owned or controlled company while the student is enrolled at the University and the University
employee is in a position to judge the quality of that student’s work or to evaluate the student in any
way.
3. The University employee taking any part in the negotiation of a contract between the University and
a company, where the employee has a financial interest, consultancy or decision making position in
the company.
4. The University employee publishing or formally presenting research results or providing expert
commentary on a subject, without disclosing any financial interest in a company that may benefit
from the results being reported or opinions expressed.
Where a financial interest consists of shares, it will be treated as excluded from the definition of financial
interests where the following conditions are met:

The shares are held in a company that is listed on a recognised stock exchange; or

For unlisted companies there is no relationship or connection, explicit or implicit, between the
acquisition of the shares and any research or other activity to be conducted for that company which
could be considered to be in the normal business interests of the University.
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Appendix 2 - Additional Guidance for Line Managers on Acceptance of an External
Interest
a) Where the appointment is by a “for profit” organisation, the senior manager should consult with the
Director of Research and Enterprise Services prior to approval.
b) Where the external appointment is with a body with which the University has, or may have, a financial
relationship (e.g. a research funder) then the advice of the Faculty Pro-Vice Chancellor and the
Director of Research & Enterprise Services must be sought. Consent to continue will be subject to
ensuring arrangements for the oversight of any activity supported by the external body which involves
the staff member (e.g. as a Principal Investigator on a grant).
c) Where the external appointment relates to organisations which are wholly unconnected with University
activity the grounds for declining shall be restricted to the impact on the member of staff’s University
workload or on normal working hours.
d) Founding academic staff are permitted to hold directorships in spin-out companies and consent to hold
such directorships shall reside with the PVC Research and Innovation on behalf of Executive Board.
e) The scheduling of commitments to external bodies should be such that they do not result in significant
rescheduling of lectures, tutorials or other University supervisory or management duties.
f)
In certain circumstances where the commitment in time is substantial it may be necessary for the
University to be financially compensated, or for the employee to agree to reduce the hours worked for
the University pro rata. Such agreements shall be approved under the University’s Delegation of
Authority. Financial compensation to the University is usually determined to be the full commercial rate
for the member of staff involved.
g) In certain circumstances the conflict of interest or commitment may not be acceptable in the judgement
of the senior manager. In such cases, the senior manager shall communicate their decision including their
rationale to the relevant member of staff.
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Appendix 3 - Update Process
The policy explicitly states that the PDR process should be used to ensure the declarations of interest form
is completed if required.
The following process will be used to ensure the register of interests is kept up to date:
 Each Head of Unit will receive a report listing the staff for which they have responsibility and
indicating those that have declared an external interest. A reminder of this policy will also be sent.
These will be sent during the month of May. Each Head of Unit will be asked to check the register
and instruct staff to update any declarations previously made and/or to submit any new interests
as appropriate

An updated report will then be sent to the Head of Unit in August. Reports will be made available
upon request any time during the year

Relevant staff will be reminded on their PDR form of the need to complete (and annually update)
a declaration of interest.
Compliance - The policy states that the following individuals must complete a declaration at least annually:
 Members of Council, Senate and their formal committees including Executive Board.
 All Heads of Unit
 All research active staff
 Any staff member who holds an (external) directorship, trusteeship or senior position
 Any staff member regardless of grade with an external interest (defined by this policy)
The format of the report to the Head of Unit will return those grades as standard, plus any other staff
member who has completed the declaration. It will be the responsibility of the Head of Unit to ensure that
research active staff are specifically instructed to complete a declaration.
Reports to be sent to Unit Managers as well as heads.
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