CFA Level 1: Standard IV (B) (8) Disclosure of Referral Fees

Standard IV (B) (8): Disclosure of Referral Fees

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Question

The stated purposes of Standard IV (B) (8), Disclosure of Referral Fees, are to:

I. Help the customer or client evaluate the full cost of the services.

II. Help the customer or client evaluate any possible partiality.

III. Help the customer or client evaluate potential conflicts of interest as a result of the participation of immediate family in transactions.

Answers

Explanations

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A. B. C. D. E. F. G.

D

This question relates to Standard IV (B.8), Disclosure of Referral Fees. Statements I & II give the two primary reasons listed in the Standards of Practice

Handbook for disclosing referral fees to clients. The purpose given in Statement III is not a primary consideration.

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