The Prime Minister has warned Maori Party MP Hone Harawira that neither he nor his family can be seen to be making money off the Tino Rangatiratanga flag.
The flag was recently named as the official Maori flag. It was chosen to fly next to the New Zealand flag at official sites and on the Auckland Harbour Bridge on Waitangi Day.
Radio New Zealand political staff say it is understood that Mr Harawira's wife is a trustee of a trust set up to deal with any royalties that may arise from sales of the flag.
However, it appears Mr Harawira has distanced himself from the trust so as to avoid any perception that he could benefit financially.
Mr Harawira led the consultation process that resulted in the black, white and red flag being chosen.
Prime Minister John Key says the flag was selected to represent unity between Maori and the Crown - not for the Harawira family to make money.
Mr Key says his advice is that only the designers of the flag, not the Harawira family, would be able to copyright the flag.
He says Mr Harawira, as with any politician, must be careful to avoid any perception of conflict of interest or of feathering their own nest.
Waitangi Day, a public holiday on 6 February, marks the signing of the Treaty of Waitangi between the Crown and Maori leaders.
