Considerations for Accepting Referral Fees

Easy Cfa Institute Code And Standards Conflicts - Referral Fees

As a financial advisor, you are building relationships with various service providers to enhance your offerings to clients. You are approached by a respected legal firm that offers to pay you a referral fee for every client you send their way. You are considering this offer, but you remember your obligations under the CFA Institute Code of Ethics and Standards of Professional Conduct.

What should you consider before accepting this referral fee?

Referral fees are allowed as long as you disclose the arrangement to your clients.

You can accept referral fees only if they do not create a conflict of interest.

Referral fees are prohibited, regardless of disclosure or potential conflicts.

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