Disclosing Conflicts of Interest in a Recommendation

What this video covers

• Why a verbal-only explanation of conflicts during the pitch automatically fails Regulation Best Interest's disclosure obligation
• The strict timing rule: written disclosure must be given before or at the time of the recommendation, never after the trade
• The three items under "scope and terms of the relationship": capacity, material fees and costs, and type or scope of services including material limitations
• Why conflicts of interest form a separate branch of disclosure, not a fourth sub-item under relationship terms
• The Regulation Best Interest definition of conflict: an interest that might incline the broker, dealer, or associated person to make a recommendation that is not disinterested
• Why delivering Form CRS does not satisfy the separate, recommendation-specific written disclosure duty under Regulation Best Interest
• How to identify answer choices that incorrectly treat general relationship summaries as substitutes for specific regulatory obligations