Ethical conflicts may arise as a result of

Question

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Incentive compensation schemes, soft dollar arrangements and marketing investment management services, all have the potential to create conflicts of interest for financial professionals, which can be unethical. Incentive compensation schemes may motivate professionals to recommend products or services that may not be suitable for the client. Soft dollar arrangements involve using client's brokerage commission to pay for services and research received from brokerage firms. This can lead to the professional receiving undisclosed compensation from the brokerage firm and there is a possibility that the products or services recommended may not be in the best interest of the client. Marketing investment management services without fully disclosing the associated fees, risks and benefits can lead to conflicts of interests too. Therefore, all three options A, B and C create ethical conflicts.

Ethical Conflicts May Arise as a Result of