I remember reading somewhere in Schweser that if someone refers a client to his own firm’s brokerage without disclosing it, is not a violation. In the PM CFAi sample, question 15 says differently. I am not sure that what I remember is correct, but if it is, then the only difference I can think of is whether the clients he’s referring are already clients of the firm, or not. Can anyone shed some light on this? Thanks!
As far as I remember, it depends on whether it is obvious that the firm would refer clients to its own unit - like if the client knows that the firm is providing brokerage services and can assume that the firm will refer him to their own department.
Thanks mihau