An advisor, Julian, is meeting with Mark, a successful entrepreneur in Halifax, NS, looking for an insurance solution for estate planning. Julian recommends a tax-exempt permanent life insurance policy based on Mark's high income and desire to transfer wealth efficiently. However, Julian earns a significantly higher commission on this product compared to other suitable options. According to the CISRO Code of Conduct, what is Julian's responsibility?

Question: An advisor, Julian, is meeting with Mark, a successful entrepreneur in Halifax, NS, looking for an insurance solution for estate planning. Julian recommends a tax-exempt permanent life insurance policy based on Mark's high income and desire to transfer wealth efficiently. However, Julian earns a significantly higher commission on this product compared to other suitable options. According to the CISRO Code of Conduct, what is Julian's responsibility?

Answer options: ✅ Julian must prioritize Mark's best interests over his own financial gain, disclosing any conflicts of interest and ensuring the recommendation is truly suitable.

• Julian is justified in recommending the higher-commission product if it genuinely meets Mark's stated needs, as commissions are part of his compensation.
• Julian needs only to ensure the product is suitable; commission levels are an internal business matter and not subject to disclosure.
• Julian should mention the higher commission after Mark has committed to purchasing the policy to avoid influencing his decision negatively.

Correct answer: Julian must prioritize Mark's best interests over his own financial gain, disclosing any conflicts of interest and ensuring the recommendation is truly suitable.

Explanation: The CISRO Principles of Conduct require advisors to always act in the client's best interest, prioritize the client's interests over their own, and manage and disclose any conflicts of interest to ensure suitability and fair treatment.