Question

The manager of a discretionary account places client funds in a suitable investment because it provides a higher commission than alternatives that are also suitable for the client. The selected investment subsequently appreciates in value. This investment manager did not:

Answer 1

Answer: C. have a conflict of interest because the investment was suitable for the client

Explanation:

Conflict of interest occurs when the aims of two different parties are not thesame. In such scenario, the best interest of an individual is different from the best interest of the other person.

Since the client funds placed for investment brought about a good return, then the investment manager doesn't have a conflict of interest because the investment was suitable for the client.