A Canadian investment professional becomes aware of a situation where their personal interests could potentially influence their recommendations to a client. What is their ethical obligation in this scenario?

Question: A Canadian investment professional becomes aware of a situation where their personal interests could potentially influence their recommendations to a client. What is their ethical obligation in this scenario?

Answer options:

• To prioritize their personal interests if they are substantial. ✅ To disclose the conflict of interest to the client and manage it appropriately.
• To simply avoid making any recommendations to that client.
• To proceed with the recommendation, assuming no harm will come to the client.

Correct answer: To disclose the conflict of interest to the client and manage it appropriately.

Explanation: Managing conflicts of interest requires disclosure to the client and taking reasonable steps to ensure the client's interests are paramount, as per ethical standards and regulatory requirements in Canada.