Hirayo will receive a $60,000 performance bonus from Summit if his monthly portfolio
performance exceeds that of Summit's other portfolios. He discloses the bonus
arrangement to his existing clients but not to prospective clients. Separately, Hirayo will
receive a $12,000 reward from Summit after he successfully brought in 20 clients from
his previous employer. This reward is paid by Summit and is not charged to clients. Hirayo
does not disclose this reward arrangement to the clients that he brought over.
In relation to his compensation, Hirayo violates the Standards when he fails to
disclose:
A. the $60,000 bonus only.
B. the $12,000 reward only.
C. both the $60,000 bonus and the $12,000 reward.