What must agents be cautious about regarding compensation structures?

Agents should be particularly cautious about avoiding conflicts of interest because this aspect is crucial in maintaining trust and integrity in the relationship between agents, their clients, and the companies they represent. Conflicts of interest can lead to situations where an agent may prioritize their own financial gain over the best interests of their clients. This can result in unethical practices, such as recommending products that offer higher commissions instead of those that are more suitable for the client’s needs. By focusing on avoiding conflicts of interest, agents can ensure they uphold ethical standards and provide clients with advice and products that genuinely benefit them.

The other options, while they may contain elements related to compensation structures, do not emphasize the ethical responsibility that agents hold. While agents cannot arbitrarily create their own commission structures or charge for any additional services without considering the company’s guidelines, and they must adhere to company policies on fees, the core focus in compensation structures lies in ethical considerations and ensuring that client interests are prioritized.