medium · Certified Financial Planner General Principles
Fenwick is a CFP® professional who identifies as 'fee-only.' He recently began referring clients to a local estate attorney who pays Fenwick a small 'administrative fee' for each referral.
Does Fenwick's 'fee-only' description comply with the Standards of Conduct?
- No, because referral fees are prohibited under the Duty of Loyalty regardless of the planner's title.
- Yes, because the fee comes from a professional peer rather than a product provider.
- No, because the receipt of a referral fee constitutes sales-related compensation.
- Yes, provided the fee is fully disclosed to the client in writing.
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