When a firm receives competing client orders in the same security, a conflict of interest can arise if the firm favours one client over another, for example by selecting which order gets priority, timing execution to benefit a preferred client, or allocating fills unfairly. The most appropriate control is to follow a clearly documented order handling and execution policy that treats clients fairly and applies objective prioritisation, commonly time priority. Placing orders as they are received is the clearest expression of fair sequencing and reduces discretion, which is where conflicts typically arise. Withdrawing services is unnecessary and could disadvantage clients. Disclosing all orders to clients would breach confidentiality and is not required or appropriate. Processing sell orders before buy orders creates a systematic bias and is not fair unless there is a justified, disclosed rule that applies consistently and does not disadvantage clients. The exam focus is that conflicts are best managed by robust policies, consistent processes, and fair treatment, rather than selective disclosure or arbitrary sequencing.