Question of the Week – Ethical and Professional Standards

Section VI(C) of the Standards: Referral Fees. Members and Candidates must disclose to
their employer, clients, and prospective clients, as appropriate, any
compensation, consideration, or benefit received from or paid to others for the
recommendation of products or services.

Lisa is allowed to decline the fund addition or refuse
commission for the fund according to the Standards. She has to make the
necessary disclosures if she wishes to add fund XYZ to the client’s portfolio.
Lisa is NOT allowed to add the fund without disclosing the commission.