Lyle Kent is a broker at Jackson & Phax (J&P), a discount brokerage firm that is expanding into research and asset management services. In an effort to generate business for the new units, J&P is offering an employee incentive of $500 for each new client referral from the brokerage unit that signs on with the asset management group. Kent has made several successful referrals in the first month without disclosing the incentive program. Did Kent violate the Standards of Professional Conduct?

a) Yes.

b) No, because the referral was directed toward his own firm.

c) No, because the bonus is part of his employment compensation.