Ethical and Professional Standards Q71

71Catherine Czcibor, CFA, works as a portfolio manager for a local investment counseling firm. She is also a member of her son‟s school committee to help raise funding for a program for gifted children in music. Czcibor discusses an arrangement with her supervisor in which she will donate a certain percentage of her fees from clients referred to her by the school staff and parents. She gets a written approval from her firm. The school‟s board also approves Czcibor‟s plan and agrees to announce it in their upcoming parent teacher meeting along with sending a newsletter to all the parents and staff. When Czcibor starts getting the school referrals, she clearly discusses the referral arrangement with her new clients and the distribution of her donation to the school. Has Czcibor violated any CFA Institute Standards of Professional Conduct?

Option : C
Explanation : Czcibor has not violated VI(C) Referral Fees because she obtained permission from her employers, the school, and the clients.

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