Standard 6: Conflicts of Interest

Question 1

A. Disclosure of Conflicts

Answer 1

• Make full and fair disclosure of all matters that could reasonably be expected to impair their independence and objectivity or interfere with respective duties to their clients, prospective clients, and employer.
• Disclosures must be prominent, delivered in plain language, and communicated effectively.

Question 2

B. Priority of Transactions

Answer 2

• Investment transactions for clients and employers must have priority over investment transactions in which a Member or Candidate is the beneficial owner.

Question 3

C. Referral Fees

Answer 3

• Disclose to employers, clients, and prospective clients any compensation, consideration, or benefit received from or paid to others for the recommendation of products or services.