Exam ICWIM Topic 1 Question 80 Discussion

Actual exam question for CISI's ICWIM exam
Question #: 80
Topic #: 1
If someone in a fiduciary position has personal or professional interests that compete with their duty to act in the client's best interest, this is called:

Suggested Answer: D Vote an answer

A conflict of interest arises when a financial professional's own interests compete with their duty to act in the best interest of the client.
* Examples:
* A financial adviser recommending a high-commission product instead of the best investment for the client.
* An investment manager trading ahead of client orders to profit personally (front-running).
* Regulatory Requirements:
* Under FCA and MiFID II regulations, firms must disclose conflicts and take reasonable steps to manage them.
# Reference: FCA Handbook (COBS 2.1 - Acting Honestly & Fairly), CISI Ethical Standards.

by Mark at Jun 14, 2025, 12:26 PM

Limited Time Offer

15%

Off

Get Premium ICWIM Questions as Interactive Self Test Engine or PDF

Comments

Chosen Answer:
This is a voting comment (?) , you can switch to a simple comment.
Switch to a voting comment New
Nick name: Submit Cancel
A voting comment increases the vote count for the chosen answer by one.

Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.
0
0
0
10