What must a CFA member disclose when engaging in independent practice?

In the context of independent practice, CFA members are required to disclose various aspects of their engagement to ensure transparency and uphold ethical standards. The correct choice emphasizes the importance of informing clients about the duration of engagement and the income share in these arrangements.

Disclosing the duration of engagement helps to provide clients with an understanding of the commitments involved and the expected timeframe of the professional relationship. This transparency is crucial for building trust and managing client expectations effectively.

Furthermore, stating the income share is vital as it ensures clients are aware of any financial arrangements that could influence the advice provided or the services rendered. This disclosure helps to mitigate any potential conflicts of interest, as clients can better assess the motives behind the advice they receive.

In comparison, while client names and contact information, advertising materials, and financial incentives are important aspects of professional conduct, they do not form the core requirements outlined in this specific context for independent practice disclosures. The focus here is specifically on the engagement terms and financial aspects that could directly impact the client’s decision-making.