Joe James, CAIA, CPA, is a CFA Level II candidate living in Boston. In the
course of his accounting practice, James often refers clients to a local law
firm specializing in estate planning. James does not violate client
confidentiality and does not receive compensation for the referral. However, the
law firm often gives James tickets to the theater and major sporting
events.
Which of the following statements regarding disclosure is
CORRECT? James:
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A)
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need not disclose the benefits received for referring clients because no
compensation is received.
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B)
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need not disclose the benefits received for referring clients because the
clients were developed in the course of his accounting practice.
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C)
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must disclose the benefits received for referring clients to the law
firm.
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