Unable to execute update query. Can't we use a query within a update query which also has joins?

Below is the query:
  UPDATE  (select * from [HR_DEV_DM].[CFQ_TEST].CFQ_Referrals as CFRQ LEFT JOIN [HR_DEV_DM].[CFQ_TEST].t_Chg_Rsns as CHGRSNS ON CFRQ.RecChangeID = CHGRSNS.Chg_ReasID) INNER JOIN [HR_DEV_DM].[CFQ_TEST].t_Qt_Typs ON [HR_DEV_DM].[CFQ_TEST].CFQ_Referrals.QuoteType = [HR_DEV_DM].[CFQ_TEST].t_Qt_Typs.Qt_Typ  SET [HR_DEV_DM].[CFQ_TEST].CFQ_Referrals.RecKey = dbo.BuildRecordKey([HR_DEV_DM].[CFQ_TEST].CFQ_Referrals.[ReferralCode], [HR_DEV_DM].[CFQ_TEST].CFQ_Referrals.[RetentionID], [HR_DEV_DM].[CFQ_TEST].CFQ_Referrals.[ClientFName],[HR_DEV_DM].[CFQ_TEST].CFQ_Referrals.[ClientLName],  IIf([HR_DEV_DM].[CFQ_TEST].t_Qt_Typs.Qt_Grp='MOAT',[HR_DEV_DM].[CFQ_TEST].CFQ_Referrals.[QuotePolicyType],[HR_DEV_DM].[CFQ_TEST].CFQ_Referrals.[ClientZip]), [HR_DEV_DM].[CFQ_TEST].[CFQ_Referrals].[QuoteType]) WHERE ((([HR_DEV_DM].[CFQ_TEST].CFQ_Referrals.RecProcessed)=0)  A ...