When must client consent be obtained regarding conflicts of interest?

• A. Never.
• B. Always in all transactions and before proceeding.
• C. When required by policy or regulation and before proceeding with the transaction.
• D. Only after the trade is executed.

Answer: (C)

Consent is required for conflicts of interest whenever there is a material conflict that could affect the client’s interests, and it must be obtained before the trade proceeds if policy or regulation requires it. This protects the client by ensuring they’re informed about the conflict and have agreed to move forward with full awareness. For example, if a firm has a financial interest tied to a recommendation, the client should be told and asked to consent before the transaction is executed. The other options don’t fit: conflicts do exist, so never is not accurate; not all transactions involve a conflict or require consent in advance, so “always in all trades” is too broad; and obtaining consent after the trade would leave the client without protection before the decision is made.