Catherine Czcibor, CFA, works as a portfolio manager for a local investment counseling firm. She is also a member of her son‟s school committee to help raise funding for a program for gifted children in music. Czcibor discusses an arrangement with her supervisor in which she will donate a certain percentage of her fees from clients referred to her by the school staff and parents. She gets a written approval from her firm. The school‟s board also approves Czcibor‟s plan and agrees to announce it in their upcoming parent teacher meeting along with sending a newsletter to all the parents and staff. When Czcibor starts getting the school referrals, she clearly discusses the referral arrangement with her new clients and the distribution of her donation to the school. Has Czcibor violated any CFA Institute Standards of Professional Conduct? A. Yes, related to conflicts of interest. B. Yes, related to additional compensation arrangements. C. No.
Would say B
I’m going with C
At the time of posting I was convinced that there was a conflict of interest since her son was going to that school. The answer says there is no violation of referral fees since she obtained permission from school, firm and the clients. C is correct.
Now I think that those permissions are also disclosures per se and hence none of the standards are violated. So, I see answer is C. Thanks for your inputs.
Correct me if I am wrong.
The reason C is the answer is because this does not conflict with her employers interests and is fully disclosed and has received permission for it. Now if it was not disclosed AND approved, it would be a violation. 
totally agree. thanks for input!
Yes but she disclosed it to the new clients only when she started receiving the fees what about the existing?
… she will donate a certain percentage of her fees from clients referred to her by the school staff and parents …
I think it assumes percentage of fees from only these clients will be donated. So, no need to disclose about it to the existing clients fees received from which will not be donated. From the other perspective, she has already business of existing clients. Why would she do such a marketing?