Answer: No, only Statement 1 is correct.

## Explanation **Statement 1:** "Members are required to disclose referral fees paid to others." - **Correct** Under CFA Institute Standard VI(C) - Referral Fees, members must disclose to clients and prospective clients any compensation or benefit received from or paid to others for the recommendation of products or services. This includes referral fees paid to others. **Statement 2:** "Members are required to disclose referral fees received from others." - **Incorrect** While members must disclose referral fees received from others, the requirement specifically applies to disclosure to clients and prospective clients, not as a blanket requirement to disclose to everyone. **Key Points:** 1. Standard VI(C) requires disclosure of referral arrangements to clients and prospective clients 2. Disclosure must be made before entering into any formal agreement for services 3. The disclosure must include the nature of the referral arrangement and the amount or estimated amount of the compensation 4. Both referral fees paid and received must be disclosed to affected clients Therefore, only Statement 1 is correct, making option B the correct answer.

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