Under CIRO rules, when must a registratant firm generally disclose a material conflict of interest to a client?

Question: Under CIRO rules, when must a registratant firm generally disclose a material conflict of interest to a client?

Answer options:

• Only when the client specifically requests it.
• At the time of the annual account review.
• Before the registrant firm takes any action to address the conflict. ✅ When the conflict is identified, if not already addressed in the client's best interest.

Correct answer: When the conflict is identified, if not already addressed in the client's best interest.

Explanation: Registrants must identify, address, and if conflicts of interest cannot be avoided, they must be disclosed to clients in a timely manner, especially if not already addressed in the client's best interest, to help the client understand the nature and extent of the conflict.