Standard IV (B.4) deals with ________.
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A. B. C. D. E. F. G. H.E
Standard IV (B.4) deals with the priority of transactions of clients and employers over transactions in investments in which the member is the beneficial owner.
Standard IV (B.4) of the CFA® Level 1 curriculum deals with the disclosure of referral fees. The correct answer is option D, "Disclosure of Referral Fees."
Referral fees refer to compensation or payments received by a CFA® charterholder or CFA® candidate for referring clients or potential clients to other professionals or service providers. These fees can create conflicts of interest and potentially compromise the objectivity and independence of the CFA® charterholder or candidate.
Standard IV (B.4) requires CFA® charterholders and candidates to disclose any referral fees or compensation received for referring clients to ensure transparency and maintain the trust of their clients. The disclosure should be made to the clients or prospective clients before or at the time of the referral.
By disclosing referral fees, CFA® charterholders and candidates provide their clients with important information that may influence their decision-making process. This allows clients to assess any potential conflicts of interest that could arise due to the referral arrangement.
It is important to note that this standard focuses specifically on the disclosure of referral fees and does not cover other aspects of disclosure, such as conflicts of interest, material nonpublic information, or performance presentation, which are covered by other standards within the CFA® curriculum.
Therefore, option D, "Disclosure of Referral Fees," is the correct answer for this question.