A member discloses a conflict but continues to benefit from it through a trade. Which Standard is violated?

• A. Standard VI.A Disclosure of Conflicts
• B. Standard I.C Misrepresentation
• C. Standard IV.A Loyalty, Prudence, and Care
• D. Standard V.A Diligence and Reasonable Basis

Answer: (A)

The issue tests how to handle conflicts of interest. When a conflict exists, you must disclose it fully and manage it to avoid biasing your actions. Simply disclosing a conflict is not enough if you continue to pursue a trade that personally benefits from that conflict. Doing so shows you are prioritizing personal gain over your duty to clients, which breaches the standard on disclosure of conflicts. The other standards cited address misrepresentation, loyalty to an employer, or diligence, none of which directly capture the obligation to manage conflicts and avoid profiting from them after disclosure.