Series 54: 2.2.2.3. Disclosure Of Conflicts Of Interest

2.2.2.3. Disclosure of Conflicts of Interest

The non-solicitor municipal advisor must disclose all conflicts of interest in writing to the municipal entity client or obligated person client prior to engaging in any advisory activities. Examples of potential conflicts include:

• The municipal advisor has an affiliate that is currently advising the client in regard to the same issue.

• The municipal advisor paid, whether directly or indirectly, to be engaged as the client’s municipal advisor.

• The municipal advisor was paid by a third party to recommend the third party to the municipal client.

• The municipal advisor is involved in a fee-splitting arrangement with an entity that provides investments or other services to the client.

• The municipal advisor will be paid contingent on the size of a transaction or the closing of a transaction (referred to as contingent fees).

• Any other actual or potential conflicts of interest that could possibly impair the municipal advisor’s ability to provide advice in accordance with the duty of care and duty of loyalty standards.

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