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Answer: Both Amari and Jacobs
**Explanation:** According to CFA Institute Standard VI(C) - Referral Fees, members must disclose to clients and prospective clients: 1. The existence of any referral fee arrangement 2. The nature of the arrangement 3. **The dollar amount or estimated dollar value** of the referral fee 4. The timing of the disclosure must be **before** the client enters into an agreement **Analysis of Jacobs' actions:** - Jacobs disclosed the arrangement before signing service agreements ✓ - However, he did not provide the estimated dollar value ✗ - **Violation:** Failure to provide estimated dollar value **Analysis of Amari's actions:** - Amari provided complete details including estimated dollar value ✓ - However, she disclosed **after** the service agreements were signed ✗ - **Violation:** Failure to disclose before entering into agreement **Conclusion:** Both Jacobs and Amari violated Standard VI(C) - Referral Fees, but for different reasons: - Jacobs violated by not providing estimated dollar value - Amari violated by disclosing after the agreement was signed Therefore, both have violated the Standards.
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David Jacobs, CFA, and Megan Amari, CFA, work for Global Investment Inc. and receive fees for client referrals. Prior to signing service agreements with clients, Jacobs informs his clients about the referral fee arrangement without providing an estimated dollar value. Amari discloses all details of the arrangement, including the estimated dollar value, to her clients only after the service agreements are signed. Who has violated the Standards?
A
Amari only
B
Jacobs only
C
Both Amari and Jacobs
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