Conflict of Interest: CFA Level 1 Exam Preparation

Standard IV (B.7) - Disclosure of Conflicts

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According to Standard IV (B.7), Disclosure of Conflicts, the most prevalent conflict pertains to ________.

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A

Under Standard IV (B.7), Disclosure of Conflicts, the most prevalent conflict pertains to members' ownership of stock in companies they recommend. To avoid discrimination against members, sell-side members should disclose any materially beneficial ownership interest in a security or other investment that the member is recommending. Buy-side members should disclose their procedures for reporting requirements for personal transactions.