Reading 2: fair dealing and transaction allocation (Preston and Colby)
book 1, reading 2, page 87: Example 4 (Fair Dealing and Transaction Allocation):
The second part of the Comment states:
“Among other things, Preston must disclose to the client that the adviser may act as broker for, receive commissions from, and have a potential conflict of interest regarding both parties in agency cross-transactions. After the disclosure, she should obtain from the client consent authorizing such transactions in advance.”
I am not clear what the textbook is trying to explain here.
Could anyone enlighten me?
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