What is the purpose of disclosing conflicts of interest related to fee arrangements?

• A. To allow reciprocal influence.
• B. To ensure transparency and client consent.
• C. To avoid accountability.
• D. It is optional.

Answer: (B)

Transparency and informed consent drive the purpose of disclosing conflicts of interest related to fee arrangements. When clients know how fees may influence the advice they receive, they can recognize potential biases, ask questions, and decide whether to proceed or seek different terms. This openness helps protect the client's interests, foster trust, and empower better decision-making. It’s not about enabling reciprocal influence or evading responsibility; disclosing biases prevents hidden pressures and keeps the advisor accountable to the client. Such disclosures are typically required by ethical or regulatory standards rather than optional.