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Ethics referral fees

hi Brave ones,
example: ” Mr XYZ, (CFA) refers to good candidates to Mr ABC, (CFA), and Mr ABC buys him some nice gifts per candidate”
the requirement to disclose the referral arrangement is only applicable to Mr ABC (disclose to employer and candidates before accepting them)?
or the requirement also applies to Mr XYZ that when refers, does not disclose this to the candidates…?
i’ve been reading many examples where “they” only talk about Mr ABC case, but do not both benefit from the arrangement?
many thanks and keep committment high!
tigas

disclose disclose disclose!
as has been said many times before, If you have to ask yourself whetehr or not it’s a violation, it probably is.

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yup, CFAI says ’ compensation paid and received should be disclosed’ so both ABC and XYZ should disclose it.

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many thanks brave ones,
as the questions almost only deal with the “Mr ABC” i was starting to be in doubt regarding Mr XYZ…
back to study mode.
cheers

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