Standard VI — Conflicts of Interest

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Question

If an advisor receives $500 per client referred to an accounting firm, is disclosure required even if the fee is modest?

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Answer

Yes, all referral compensation must be disclosed.

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Question

Under Standard VI(C), who must be told about referral compensation?

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Answer

The employer and the client or prospective client.

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Question

Under Standard VI(B), whose transactions take priority over a member's personal trades?

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Answer

Client and employer transactions.

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Question

Which substandards make up CFA Standard VI on conflicts of interest?

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Answer

VI(A) Disclosure, VI(B) Priority of Transactions, VI(C) Referral Fees.

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