Ethics question

I have nightmares about a question… i forgot where i saw it, but it has to do with a woman that works for a mutual fund company, which sells mutual funds or something like that.

I beleive the answers was does she need to disclose compensation…

Some answers, say that they do not since, people that assume a part of her salary is tied to commissions.

XXXX is a sales associate for kite brothers. Kite bros compensates sales associates for referring clients to other units of the company. Lewis recommends that a client transfer his personall acconts to the retail area of kite bros. he gives the client supporting docs that kite bros is a leader in the retail brokerage industry with a competitive fee structure. the client reviews the material and decides to move his personall accounts ot kate bros. has lewis voliated the standard of professional conduct?

A) no - becuase lewis was participating in a legimtimate incentive program established by his employer

B) yes becuase lewis is required to refuse any compensation arrangement that creates a conflict of interest with his clients.

C) yes, because lewis does not disclose the compensation he earned for the referral to another department within kite bros.

I put C, which was luckily right. Does anyone else have any examples of these type of questions?

Standard VI© Referral Fees requires members to disclose to their clients any compensation or benefit received for the recommendation of services. Full disclosure should be made in writing and should include the nature and value of the benefit. Disclosure of a compensation arrangement will allow the client to evaluate whether Lewis’ recommendation of another department within Kite Brothers is influenced by the referral fee.