Under RESA, a managing broker becomes aware that a licensee in the brokerage has failed to disclose a conflict of interest in a transaction. What is the managing broker's obligation?
Correct Answer
D) The managing broker must act immediately to ensure disclosure and may need to report the conduct to BCFSA
Managing brokers have a statutory duty under RESA to supervise licensees and ensure compliance. If a managing broker becomes aware of an undisclosed conflict of interest, they must act immediately to ensure proper disclosure is made and, depending on the severity, may be required to report the conduct to BCFSA.
Why This Is the Correct Answer
Option D is correct because managing brokers have a statutory duty under RESA to supervise licensees and ensure compliance with the Act and BCFSA rules. Upon becoming aware of an undisclosed conflict of interest, the managing broker must take immediate steps to ensure proper disclosure is made to all affected parties. Depending on the severity of the misconduct, the managing broker may also be required to report the conduct to BCFSA.
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