Series 63 practice questioneasyConflicts of Interest
Which scenario represents a conflict of interest that requires disclosure under the USA?
- AThe agent receives a higher-than-normal commission for selling a particular security✓ Correct answer
- BThe agent has passed the Series 7 exam
- CThe client is related to the agent
- DThe security is listed on a national exchange
Explanation
Why A — The agent receives a higher-than-normal commission for selling a particular security
Higher-than-normal commissions create a material conflict of interest that must be disclosed (USA Section 402). Licensing, client relation, or listing status do not constitute conflicts requiring disclosure.
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