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Two managed accounts are equally suitable for a client. One is issued by a company owned by the adviser's licensee. Which statement BEST reflects the priority rule in s961J?
Section 961J(1) of the Corporations Act 2001 (compilation 19 Sep 2026) requires the provider, when they know or ought to know of a conflict between the client's interests and those of the provider, the licensee or associates, to give priority to the client's interests. It does not ban related products: if the products are genuinely equal for the client and the client's interests have priority, recommending the in-house product can comply. Signed waivers and disclosure do not satisfy the priority rule on their own.
Candidates over-read s961J as a ban. It is a priority rule, and disclosure is not a substitute for it.
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