Investment Adviser Certified Compliance Professional (IACCP) Practice Exam

When a conflict of interest arises in providing investment advice, it is essential to provide written disclosure to clients to maintain transparency and uphold fiduciary responsibilities. Written disclosures help to clearly outline the nature of the conflict, enabling clients to make informed decisions regarding their investments. This documentation allows clients to understand how the conflict might affect the recommendations provided and helps establish trust between the adviser and the client.

Providing a written disclosure also serves to protect the adviser legally, demonstrating that they have taken the appropriate steps to inform the client of potential issues that could influence their investment choices. Such disclosures are consistent with regulatory requirements that aim to ensure clients are fully aware of the circumstances that could impact their financial interests.