Under the Conflicts of Interest standard, which description best captures the required disclosure?

• A. Disclosure is required only for conflicts with legal requirements.
• B. Full and fair disclosure of all matters that could reasonably be expected to impair independence and objectivity is required.
• C. Disclosure is optional if the client approves.
• D. Only monetary conflicts need to be disclosed.

Answer: (B)

The key idea is that conflicts of interest must be disclosed in a full and fair way when they could reasonably be expected to impair a professional’s independence and objectivity. This means any situation that could bias the advice should be disclosed, not just legal requirements or monetary issues. The standard aims to give clients enough information to judge potential bias and to decide whether to proceed with the relationship.

So the best description is that full and fair disclosure of all matters that could reasonably be expected to impair independence and objectivity is required. This goes beyond legal mandates, isn’t optional with client approval, and covers both monetary and non-monetary conflicts that could affect judgment.