Lesson 7 of 8 · 14 min
Standard VI: Conflicts of Interest
Avoid conflicts where you can and disclose the rest clearly, trade for clients and the employer before yourself, and tell people when someone is paying for a referral.
In short
- VI(A) Avoid or Disclose Conflicts: avoid, or fully and fairly disclose, anything that could reasonably be expected to impair independence or interfere with duties to clients, prospects and employer. Disclosures must be prominent, in plain language and effective.
- Best practice is to avoid the conflict; disclosure is the minimum when avoidance is not reasonable.
- VI(B) Priority of Transactions: client and employer trades come before trades in which you are a beneficial owner. Personal trading is fine if clients are not disadvantaged, you do not profit from client trades, and rules are followed.
- VI(C) Referral Fees: disclose to employer, clients and prospects any compensation or benefit received from, or paid to, others for recommending products or services, before the client signs up, with its nature and estimated value.
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