Generally speaking, a conflict of interest can arise in any situation where a fiduciary puts its own interest before the interests of the account. Is this statement true or false?

The statement is true because a conflict of interest fundamentally arises when a fiduciary, who is expected to act in the best interests of another party, prioritizes personal gain over the obligations owed to that party. A fiduciary relationship is built on trust and requires the fiduciary to place the interests of the client or beneficiary above their own.

In practical terms, this means that if a fiduciary has a financial incentive or personal interest that could influence their judgment, it can lead to decisions that do not align with the best interests of the client. This situation can be especially pronounced in industries like finance and law, where fiduciaries must navigate complex relationships and motivations. Identifying and managing these conflicts is essential to uphold ethical standards and maintain client trust.

Understanding that conflicts of interest can arise in any situation where the fiduciary's interests diverge from those of the account holder is crucial for professionals in fiduciary roles, enabling them to act responsibly and maintain the integrity of their role.