CFA Practice Question

CFA Practice Question

William Clark and Madison Turner are portfolio managers for AWR Investments. Clark directs the trading desk to use the broker dealer LOD Inc. In return LOD recommends AWR to its wealthiest clients. The price and execution of LOD is inferior compared to some other available broker dealers. Turner receives a commission from AWR whenever she assists the salespeople in recruiting wealthy clients. Turner does not disclose these commissions to the clients she interacts with. With respect to the requirements for referral fees, who has violated the Standards?
A. Only Turner.
B. Only Clark.
C. Both Clark and Turner.
Explanation: Turner's commissions are to be expected.

User Contributed Comments 1

User Comment
ninad123 Did Clark violate 3 A Loyalty, Prudence and Care and not referral? He is directing trades not client. Are they the same?

Turner's explanation is correct though!
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