CFA Practice Question

CFA Practice Question

Compliance procedures for Standard VI (C) - Referral Fees include all of the following EXCEPT
A. disclosure to the client or the prospect should be made in writing or orally.
B. nature of consideration along with the dollar value should be disclosed to the prospect or the client.
C. before entering into a referral fee arrangement, the legal counsel should be consulted.
Explanation: The disclosure should be made in writing before an agreement is signed with the prospects.

User Contributed Comments 5

User Comment
dimanyc standard doesn't mention that you need to discolse to legal counsel or that the disclosure needs to be done in either writing or orally.
Mago Yes it is mentioned in the example 2 in the standard : " The disclosure should include the nature and the value of the benefit and should be made in writing."
phuviet281 They said "should" not "must" :-?? and this is on the example, not include in Guidance, so I feel a little bit confuse here...
powers023 After going through half of these mock exams, I find the ethics questions are good in that they make you go back and re-read each standard, but I feel like they are not representative of what we will see on the CFA. Most of them are terribly vague and seem to have more than 1 right answer even after I've read the explanation.
zriddle I'm Learning to avoid any answer that says orally in ethics.
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