Understanding Referral Fees Under CFA Ethical Standards

Very Easy Cfa Institute Code And Standards Conflicts - Referral Fees

As a CFA charterholder, understanding the ethical standards regarding referral fees is crucial. You are presented with a situation where you receive a referral fee from a financial institution for directing a client to them. Which of the following statements is true regarding your obligations under the CFA Institute Code of Ethics and Standards of Professional Conduct?

You may accept the referral fee without disclosing it to your client.

You must disclose the referral fee to your client before making the referral.

You can only accept referral fees if your client asks for them.

Hint

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