- Did Othan violate the CFA Institute Code and Standards by not disclosing to clients that he was receiving $500 for each client that he brought over to JRA from Sack?
- No
- Yes, because this is a referral fee
- Yes, because this is additional compensation
A is correct. Othan is not in violation of the CFA Institute Code and Standards. The $500 does not have to be disclosed to clients because it is not a referral fee or additional compensation, and it does not create a conflict of interest with his employer, clients, or prospective clients.
Please Explain how this is not referal fees ?
Answered earlier. Please look up.