What disclosure is necessary when providing discounted fees to clients?

When discounted fees are offered to clients, it is essential to provide disclosure to both the clients and the Administrator. This requirement is rooted in the principles of transparency and maintaining ethical standards in financial practices.

Disclosing discounted fees to clients ensures that they are fully informed about the pricing structure and are aware of any variations from standard fees. This fosters trust in the advisory relationship and helps clients make informed decisions about the services they are receiving.

Simultaneously, notifying the Administrator is important for regulatory compliance. The Administrator oversees the fair practices within the financial industry and ensures that all advisers adhere to proper conduct standards. By informing the Administrator about discounted fees, the advisor demonstrates accountability and transparency in their business practices, which is critical to maintaining the integrity of the financial advisory profession.

Hence, providing disclosure to both parties ensures a complete understanding and trust in the financial services being provided while adhering to regulatory requirements.