What is the primary focus for brokers when handling conflicts of interest?

The primary focus for brokers when handling conflicts of interest should be transparency and disclosure. In the financial and insurance sectors, it is crucial for brokers to maintain the trust of their clients. By openly disclosing any potential conflicts of interest, brokers can ensure that clients are fully informed about any factors that may influence the advice or products being presented to them.

This transparency helps to uphold ethical standards within the industry, as it allows clients to make informed decisions based on all relevant information. Additionally, it establishes a foundation for a strong broker-client relationship, which is built on honesty and trust. When clients understand the potential biases or interests that a broker may have, they are in a better position to evaluate the options and recommendations being provided.

While personal gain, minimizing client interaction, and avoiding legal repercussions are relevant considerations for brokers, they do not align as closely with the ethical obligation of providing the best possible service to clients. The primary aim is to prioritize the client's interests through clear communication and integrity in all dealings.