"A good working definition of a conflict of interest is a circumstance that makes fulfillment of the duty of loyalty less reliable.... The most serious conflict of interest involves self-dealing, when the fiduciary materially benefits from a transaction (beyond receiving a reasonable fee for services). For dually-registered advisors, 'changing hats' is another form of conflict that can be a source of confusion for clients as they are often unaware of the differences between the fiduciary and fair dealing standards of conduct and may not know when a change in roles is taking place."  MORE >>