medium · Certified Financial Planner Professional Conduct

Varela Financial Services refers clients to a local estate attorney who pays the firm a 500 'marketing fee' for each client who signs a retainer.

What must the planner do to satisfy Rank 4 (Disclosure) of the hierarchy?

  1. Disclose the fee arrangement to the client, obtain informed consent, and manage the conflict.
  2. Only disclose the fee if the client specifically asks about the firm's referral relationships.
  3. Decline the fees to avoid a prohibited transaction.
  4. List the attorney as the firm's 'preferred partner' on the website.

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