Which of the following is considered a conflict of interest under market conduct regulations?

A conflict of interest under market conduct regulations arises when a situation creates a potential for personal gain that interferes with the interests of clients or the integrity of business practices. Requesting a gift as a condition for completing business is a prime example of this situation. This behavior could pressure clients into giving something of value to the agent or broker in order to secure a deal, thus undermining the ethical standards and trust that are crucial in the insurance industry.

In contrast, offering discounts to loyal customers is a common practice aimed at fostering customer loyalty and does not typically compromise ethical standards. Providing valuable advice to clients enhances their understanding and can lead to informed decisions, reflecting a professional commitment without any personal bias. Maintaining a professional relationship with clients is essential for effective service delivery and does not create conflicts, as it centers on mutual respect and understood boundaries.