Which CFA Institute standard is violated when a member discloses conflicts to clients but continues to act in ways that benefit the conflicts?

• A. Standard IV.B Fair Dealing.
• B. Standard VI.A Disclosure of Conflicts.
• C. Standard III.C Responsibilities of Supervisors.
• D. Standard I.D Misconduct.

Answer: (B)

Conflicts of interest must be managed as well as disclosed. The standard requires full and fair disclosure of actual or potential conflicts to clients and, when a material conflict exists, the member must obtain informed consent or refrain from acting in a way that benefits the conflict. Here, disclosure occurred but the member continues to act in ways that benefit the conflict, meaning the conflict isn’t being properly managed and the client’s interests aren’t protected. That combination—disclosure without appropriate action to neutralize or mitigate the conflict—violates the standard on Disclosure of Conflicts. The other options address different ethical duties (fair dealing, supervisory responsibilities, or misconduct) and don’t capture the specific obligation to manage conflicts after disclosure.