How does the FCA define 'conflicts of interest'?

The definition of 'conflicts of interest' by the FCA revolves around situations where competing interests may impact the impartiality of a firm or individual. This is critical in the financial industry, where professionals often have various stakeholders to consider, including clients, shareholders, and other parties. When these interests conflict, there is a risk that decisions may favor one party over another, potentially leading to unfair or unethical practices.

Understanding this definition is crucial for maintaining integrity and trustworthiness in financial services. It highlights the need for firms to identify, manage, and disclose any potential conflicts to ensure that they act within the best interests of their clients.

The other options do not align with the FCA's definition. Acting in the best interest of consumers, sharing insider information, or improperly offering discounts do not encapsulate the essence of a conflict of interest as understood by the FCA. Instead, those scenarios may represent separate compliance or ethical issues that require different considerations and resolutions.