Canada Harmonized Life Licence Qualification Program (HLLQP) Ethics Practice Exam 2026 - Free HLLQP Ethics Practice Questions and Study Guide

Disclosing a referral relationship and obtaining the client’s informed consent is about managing conflicts of interest and protecting the client’s interests. The best practice is to disclose the existence of the referral arrangement before any referral is made and to obtain the client’s consent, ensuring that the referral does not create undue influence or bias in the advice or product recommendations.

This approach provides transparency so the client understands how the referral might affect recommendations, and it gives them a genuine opportunity to consent or opt out. It helps maintain trust and aligns with ethical requirements that seek to prevent hidden conflicts and biased guidance.

Choosing to keep the referral secret undermines trust and violates ethical standards for openness. Waiting to disclose only after a complaint is filed is reactive and fails to protect the client from unseen conflicts. Disclosing only after the client has purchased also misses the opportunity for informed decision-making and can undermine the client’s confidence in the advice received.