medium · Certified Financial Planner General Principles

Yuen is a CFP® professional who describes her practice as fee-only. She receives only assets-under-management fees from her clients. Her brother, a licensed insurance agent, operates a separate agency that receives commissions for policies referred by Yuen. Yuen receives no direct compensation from these referrals.

Is Yuen's compensation representation accurate?

  1. Yes, because Yuen herself receives no sales-related compensation and maintains a separate business entity.
  2. No, because a related party receives sales-related compensation in connection with her professional services.
  3. Yes, provided she discloses the familial relationship and the fact that her brother receives commissions.
  4. No, because assets-under-management fees are considered a form of sales-related compensation under the Standards.

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