Harry Lee's bonus structure change requires what action regarding client disclosure?

The correct answer focuses on the necessity of updating disclosures when a bonus structure change is implemented. This is vital for maintaining transparency and trust in the client-advisor relationship. Clients have the right to be informed about how changes in compensation structures may affect the advice or services they receive.

Updating disclosures ensures that clients are aware of any potential conflicts of interest that might arise from the new bonus structure, which is essential under ethical guidelines. By proactively informing clients about the change, the advisor demonstrates a commitment to ethical practices and prioritizes the clients' right to make informed decisions based on complete information. This approach minimizes the risk of misunderstandings and fosters a more trusting and open relationship between advisors and clients.

The other options do not adequately fulfill the ethical requirement of transparency. For instance, notifying clients only if they ask lacks initiative and may lead to clients being unaware of important changes. Keeping the policy change a secret would directly violate ethical standards of honesty and integrity. Likewise, seeking consent from clients before the change is impractical, as it assumes a level of engagement that may not be feasible or necessary; instead, proper disclosure is the standard practice.