This course is designed for investment advisory representatives, aiming to equip them with the essential knowledge and skills to navigate conflicts of interest in their professional activities. It delves into the intricate definitions, types, and examples of conflicts of interest, including actual, potential, and perceived instances, particularly in investment advisory contexts such as fee structures, proprietary products, and referral fees. The course highlights the significant impact of these conflicts on client trust and advisory relationships. It also provides a comprehensive overview of the regulatory framework and ethical standards governing the industry, offering insights into professional codes of conduct and case studies on regulatory actions. Furthermore, the course outlines effective strategies for identifying, disclosing, and managing conflicts of interest, emphasizing the importance of transparent communication and the role of compliance departments and ethics officers. Through interactive modules, quizzes, and a final assessment, participants will gain practical tools and insights to uphold the highest ethical standards in their practice, ensuring the integrity of their client relationships and the broader financial advisory landscape.

Our course is designed as a text-based, self-paced learning experience. You have the flexibility to start, pause, and resume the course at your convenience without the need to adhere to a specific schedule. This format allows you to integrate your learning seamlessly into your busy schedule, ensuring you can proceed at a pace that suits your individual needs.

Difficulty Level: Foundational

IAR CE: 1 credit in Ethics and Professional Responsibility

CFP CE: 1 hour in General CE

Learning Objectives

Upon successful completion of this course on managing and mitigating conflicts of interest for investment advisory representatives, participants will have achieved the following learning outcomes:

1. Comprehensive Understanding: Participants will possess a deep understanding of what constitutes conflicts of interest, including their various forms—actual, potential, and perceived—and the implications these have on the adviser-client relationship.
2. Regulatory and Ethical Insight: Learners will gain insights into the regulatory framework governing conflicts of interest, including SEC rules and fiduciary duties, and will understand the importance of adhering to professional ethical standards and codes of conduct.
3. Identification Skills: Participants will be equipped with the skills necessary to identify potential and actual conflicts of interest through systematic methods and best practices.
4. Disclosure Competency: Learners will understand the principles of effective and transparent disclosure and will be able to communicate conflicts of interest to clients clearly and effectively.
5. Policy and Procedure Development: Participants will learn how to develop, implement, and enforce comprehensive policies and procedures within their organizations to manage and mitigate conflicts of interest.
6. Ethical Decision-Making: Learners will be capable of making informed, ethical decisions when faced with conflicts of interest, utilizing a range of mitigation techniques including avoidance, elimination, and obtaining informed client consent.
7. Communication Skills: Participants will enhance their communication skills, enabling them to discuss conflicts of interest with clients in a manner that maintains trust and transparency.