(2025PP) Ethical and Professional Standards
Jack Mackenzie, CFA, is an investment advisor. He receives referral fees when he refers clients to an estate planning lawyer. In turn, Mackenzie pays referral fees when he receives client referrals from an insurance broker. He discloses the details of both of these referral arrangements, including fees, to his employer and clients. Mackenzie discloses this information to his clients before entry into formal service agreements with them.
Does Mackenzie's actions violate the Standard related to referral fees?
A No
B Yes, by paying referral fees to an insurance broker
C Yes, by receiving referral fees from an estate planning lawyer
解析答案：
A.Correct because, according to Standard VI(C), Referral Fees, members and candidates must disclose to their employer, clients, and prospective clients, as appropriate, any compensation, consideration, or benefit received from or paid to others for the recommendation of products or services.
Mckenzie discloses the details of both referral arrangements, including fees, both to his employer and to his clients before entry into formal service agreements. Therefore, he does not violate Standard VI(C).
B.Incorrect because Standard VI(C) does not prohibit Mckenzie from paying referral fees and thus he does not not violate the Standard.
C.Incorrect because Standard VI(C) does not prohibit Mckenzie from receiving referral fees and thus he does not violate the Standard.
