Chapter 6

Question 1

Conflicts of interest can arise between who?

Answer 1

• A member and a client

* Two or more member’s client or potential clients

Question 2

What must a member do when a conflict of interest can’t me managed well

Answer 2

A member should decline to act for one or more clients

Question 3

Does, how a conflict is handled, need to be documented?

Answer 3

Yes

Question 4

Can a member act for both clients in a single matter?

Answer 4

Yes providing:
• Adequate disclosure of all relevant facts to both parties
• Clients are given opportunity to consider whether they want the member to act for them
• Bot clients agree in writing that a member can act for both
• No preference is shown in advising one against the other

Question 5

What are ethical walls?

Answer 5

Separate teams within the same firm of tax advisers that deal with two or more clients. Strict confidentiality of information is maintained

Question 6

Does a member need to disclose to client that they’re receiving commission?

Answer 6

Yes - along with the amounts they receive