Final answer:
A conflict of interest is when personal interests may influence professional decisions, considered unethical when it impacts decision-making or harms others. Dual roles as an employee of a financial institution and financial advisor can constitute an unethical conflict if client interests are not prioritized. Institutions have policies to handle conflicts and require disclosure to manage them.
Step-by-step explanation:
A conflict of interest occurs when an individual's personal interests could potentially interfere with their professional duties or influence the decisions they make in their role. It is considered unethical when the conflict of interest compromises the decision-making process or harms the interests of other parties, which in many cases can involve a breach of trust or violation of professional standards.
Regarding the dual roles of an employee of a financial institution and a financial advisor, this situation can be seen as an unethical conflict if the individual prioritizes personal gain or the institution's profits over the financial well-being of their clients. Financial advisors are expected to act in the best interests of their clients, and any diversion from this duty due to conflicting roles can be regarded as unethical.
Institutions often have clear policies in place to manage potential conflicts of interest, and employees are typically required to disclose any situations that may lead to a conflict so they can be properly managed or avoided altogether.