RIBO Code of Conduct

The flashcards below were created by user ED_6C3 on FreezingBlue Flashcards.

  1. Conflict of interest
    • a member shall disclose in writing to a (prospective) client any (potential) conflict of interest that is associated with a transaction or recommendation
    • includes direct or indirect interest or benefit
    • must be sufficient to raise the perception of influence over the broker’s independent decision-making process, i.e. be material enough to influence informed customer
  2. Factors requiring disclosure regarding conflict of interest:
    • direct or indirect ownership interest in a brokerage by an insurer, or vice-versa
    • common ownership of a brokerage and an insurer by a financial conglomerate
    • financial relationship, direct or indirect (loan, credit facility)
    • a financial or non-financial network affiliation
    • exclusive contract or one-market exceptions
    • volume or mix of business requirements
    • receipt of contingent commission
    • sales incentives
    • premium financing companies
  3. Clarity of disclosure
    • client is entitled to full and overt transparency in the disclosure of information
    • RIBO will consider that a broker has not complied if disclosure is provided in a manner that is unclear or obscure, such as intentionally buried in a 20 pages document
  4. Fee disclosure
    • a member shall not stipulate, charge or accept any fee that is not fully disclosed, or the basis for which is not fully disclosed prior to the service being rendered
    • fee varies depending on time and effort spent, difficulty and importance of matter, special skill or service, amount involved, other remuneration, special circumstances
Card Set:
RIBO Code of Conduct
2014-04-12 20:29:31
Misc Govt Programs
Show Answers: