Conflict of Interest
Any situation where a professional's own interest — compensation, personal holdings, business relationships, or family ties — could reasonably bias the judgment they owe a client. Conflicts are pervasive in finance, not rare misconduct. The conduct rule is a strict order of operations: avoid the conflict where possible; where not, disclose it prominently and in plain language; and never let it degrade the fairness of what the client receives. Disclosure is a floor, not absolution — a disclosed conflict you still act on is still a breach.
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Related terms
Business · CEO Pay Ratio · Explanation by Omission · Fair Dealing · Form 4 · GIPS
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