C is correct because the referral arrangements should be disclosed to potential clients “before entry into any formal agreement for services” and not after the fact. This allows potential clients to consider whether the arrangement causes them any potential harm as a result of the arrangement (e.g., higher fees and potential conflicts of interests). 

A is incorrect as Standard VI(C)–Referral Fees specifically requires referral arrangements be disclosed to clients so this step should be taken regardless of any other additional actions.

 B is incorrect as the referral arrangements should be disclosed to clients before entry into any formal agreement for services and not after the fact, which would be the case with the disclosure being provided on the bills sent out in arrears.

A is correct because Standard  I(A)–Knowledge of the Law requires Members and Candidates to comply with the more strict law, rules, or regulations and follow the highest requirement, which in this case would be the CFA Institute Standards of Professional Conduct. Standard II(A)–Material Nonpublic Information would also apply as Members and Candidates who possess material nonpublic information that could affect the value of an investment must not act or cause others to act on the information. Disclosure that she meets local mandatory legal requirements, not the more strict law, rule, or regulation of the Code and Standards, would not alleviate the member from following the Code and Standards. 

B is incorrect because Standard I(A)–Knowledge of the Law requires Members and Candidates to not trade on material nonpublic information. Standard  II(A)–Material Nonpublic Information would also apply as Members and Candidates who possess material nonpublic information that could affect the value of an investment must not act or cause others to act on the information. 

C is incorrect because Standard I(A)–Knowledge of the Law requires Members and Candidates to comply with the more strict law, rule, or regulation, which in this case is the Code and Standards and not local requirements. Disclosure of the manager’s political advocacy is not required because it does not entail a conflict of interest and doing so would not alleviate the member from following the Code and Standards.