c.f. CFAI Vol 1, Page 101, Example 4 In this example, it states that “Best practice, however, dictates that the PM must disclose to clients that they are compensated for referring clients to firm products.” My understanding of the curriculum is that disclosure of referral fees to Employer, Clients and Prospective Clients is a REQUIREMENT (not a Recommendation). However, this example implies that it is a Recommendation. So, it is a Requirement or is it a Recommendation?
I’ve always believed it was a REQUIREMENT
I too have understood in the same way … that disclosure of referral fees is a requirement.
Me too - I understand that disclosure of referral fees is a Requirement. So is CFAI Vol 1, Page 101, Example 4 contradicting or am I reading it wrong?
Why example 2, internal compensation has to be disclosed, but not example 4’s 1st part on sales efforts?