Ethics - Standard VI C Referral Fees practice, referring, products

former

c.f. CFAI Vol 1, Page 101, Example 4
In this example, it states that “Best practice, however, dictates that the PM must disclose to clients that they are compensated for referring clients to firm products.”
My understanding of the curriculum is that disclosure of referral fees to Employer, Clients and Prospective Clients is a REQUIREMENT (not a Recommendation). However, this example implies that it is a Recommendation. So, it is a Requirement or is it a Recommendation?

dotamasta

I too have understood in the same way … that disclosure of referral fees is a requirement.

sgupta0827

Me too - I understand that disclosure of referral fees is a Requirement.
So is CFAI Vol 1, Page 101, Example 4 contradicting or am I reading it wrong?