What is one recommended practice to reduce conflict of interest?

Having attorneys review operative documents is a recommended practice to reduce conflict of interest because it ensures that all legal and ethical obligations are being met. This process helps to identify potential conflicts before they arise, allowing for mechanisms to be put in place that align with fiduciary duties. Attorneys can provide guidance on best practices, interpretation of laws, and help clarify the roles and responsibilities of all parties involved, which fosters transparency and accountability.

In contrast, encouraging secrecy among stakeholders can lead to misunderstandings and distrust, increasing the likelihood of conflict. Working independently without consulting others can result in unrecognized conflicts and decisions that may not align with the best interests of stakeholders. Additionally, limiting communication with beneficiaries can create a barrier to understanding their needs and concerns, further complicating relationships and potential conflicts.