Referral Fees and CFA Ethics

Easy Cfa Institute Code And Standards Conflicts - Referral Fees

According to the CFA Institute Code of Ethics and Standards of Professional Conduct, professionals must avoid activities that create conflicts of interest and must disclose any such conflicts to their clients. One type of potential conflict is through referral fees received for recommending services or products to clients.

Which of the following statements correctly describes the treatment of referral fees under the CFA Institute's standards?

Referral fees can be accepted as long as they are disclosed to clients.

Referral fees should not be accepted without prior approval from the employer.

Referral fees must always be disclosed, but can be accepted without approval.

Hint

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