What should advisers prioritize when addressing potential conflicts of interest?

Client interests in situations of conflict should be the primary focus for advisers when addressing potential conflicts of interest. This approach aligns with the fiduciary duty that advisers owe to their clients, which requires them to act in the best interests of the clients ahead of their own interests. By prioritizing client interests, advisers can build trust and maintain the integrity of their advisory relationship.

Addressing conflicts appropriately involves identifying situations where personal or financial interests could interfere with the ability to provide objective advice. Advisers must disclose any material conflicts to clients and find appropriate ways to manage them to ensure that client needs are met effectively.

In contrast, focusing solely on maximizing profits or ensuring compliance with internal policies may not sufficiently protect the client’s best interests. Additionally, while avoiding all conflicts might seem ideal, it isn't always practical since conflicts are sometimes inherent in financial advising. Advisers can manage conflicts rather than completely avoid them, allowing them to continue providing valuable services to clients while upholding ethical standards.