Which statement about the Swiss Bankers Association Code of Conduct is true?

Which statement about the Swiss Bankers Association Code of Conduct is true?

• A. A conflict of interest must never be disclosed to the client.
• B. The securities dealer has a duty of loyalty towards his clients.
• C. Conflicts of interest do not affect clients.
• D. The dealer is not required to ensure clients' interests are protected.

Answer: (B)

The main idea here is that a securities dealer must act with loyalty to the client and put the client’s interests first. The Swiss Bankers Association Code of Conduct requires this loyalty and careful handling of any conflicts of interest so that the client isn’t harmed by what the dealer stands to gain. That’s why the statement about a duty of loyalty is the correct one: it captures the fundamental obligation to prioritize the client’s interests and to conduct business with integrity. Conflicts of interest aren’t something to hide; they must be disclosed and managed so the client can receive fair and informed advice. Conflicts can influence recommendations, so they must be addressed rather than ignored, and the dealer is expected to protect and advance the client’s interests, not neglect them.

The main idea here is that a securities dealer must act with loyalty to the client and put the client’s interests first. The Swiss Bankers Association Code of Conduct requires this loyalty and careful handling of any conflicts of interest so that the client isn’t harmed by what the dealer stands to gain.

That’s why the statement about a duty of loyalty is the correct one: it captures the fundamental obligation to prioritize the client’s interests and to conduct business with integrity. Conflicts of interest aren’t something to hide; they must be disclosed and managed so the client can receive fair and informed advice. Conflicts can influence recommendations, so they must be addressed rather than ignored, and the dealer is expected to protect and advance the client’s interests, not neglect them.