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CFA Level I · CFA Level I Exam · Guidance for Standard VI: Conflicts of Interest

Under Standard VI(C): Referral Fees, a member who receives compensation for recommending a product or service is most likely required to disclose the arrangement to:

The member must disclose the referral arrangement to the employer, clients, and prospective clients, as appropriate. Standard VI(C) requires disclosure of any compensation, consideration, or benefit received or paid for recommending products or services, so that those parties can judge partiality and cost.

  1. Athe regulator only
  2. Bthe member's employer, clients, and prospective clients, as appropriateCorrect
  3. Cthe product provider's other clients only

Explanation

Standard VI(C) requires members and candidates to disclose to their employer, clients, and prospective clients, as appropriate, any compensation, consideration, or benefit received from or paid to others for recommending products or services. The other choices name recipients the Standard does not identify.

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