Delta Partners is a firm of accountants and a certified person. Its current total gross annual fee income from all activities, including investment services, is €1 million. What is the maximum amount of its gross annual fee income that can be derived from investment services?

• A. €100,000
• B. €200,000
• C. €330,000
• D. €490,000

Answer: (B)

The limit is a 20% cap on the gross annual fee income derived from investment services for a firm that combines accounting with a certified person. With total gross annual fee income of €1,000,000, 20% equals €200,000. So the maximum you can earn from investment services is €200,000. This rule helps keep the firm's focus on core accounting services and reduces potential conflicts of interest or overreliance on investment-related income. A figure like €100,000 would be below the maximum, while €330,000 or €490,000 would exceed the cap.