Referral Fees and Ethical Conduct

Very Easy Cfa Institute Code And Standards Conflicts - Referral Fees

As a financial analyst, you are expected to adhere to the CFA Institute's ethical guidelines, particularly concerning conflicts of interest. Imagine you are being offered a referral fee by a third-party vendor for directing clients towards their investment products. You consider this offer carefully because it could increase your income.

What is the most appropriate action you should take regarding the referral fee in line with the CFA Institute Code of Ethics and Standards of Professional Conduct?

Accept the referral fee without disclosure, since it benefits your income.

Decline the referral fee and disclose any potential conflict to your employer.

Accept the referral fee but inform your clients about the fee.

Hint

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