Which of the following dealing representatives is in a conflict of interest?

In this scenario, the dealing representative who is in a conflict of interest is the one who recommends mutual funds based on commission. This situation demonstrates a clear potential for conflict because Jonathan's compensation is tied to the sales of specific mutual funds. When a representative receives commissions for selling certain products, it can lead to a bias where they might prioritize their financial gain over the best interests of the client. This misalignment of motivation can cloud judgment and result in recommendations that may not align with the client's needs or risk tolerance.

In contrast, other representatives in the choices do not exhibit similar conflicts. For instance, Sarah advises clients based on their risk tolerance, indicating that she is acting in her clients' best interests. Nina provides free financial advice, which suggests she does not have a financial incentive to sell specific products, thus avoiding potential conflicts. Lastly, Mark sells low-cost index funds, which typically indicate a focus on cost efficiency and client benefit, again minimizing the likelihood of a conflict of interest.