Another ethic question that drives me crazy

Diane Harris, a CFA Institute member, is a portfolio manager for Worldwide Investments. Robert Cline, one of her clients, offered her the use ofhis condominium in Aspen for one week in February if she improves the performance of his portfolio to return at least two percentage points above that of the S&P 500 during the next 12 months. Immediately after learning about the offer, Harris informed her manager of all terms of this agreement in writing and received verbal consent to the arrangement. At the end of the year, Harris met the performance criteria set by Cline and accepted the vacation. Did Harris violate Standard IV(B) Additional Compensation Arrangements? A. Yes. B. No, because the arrangement did not involve any cash. C. No, because Harris notified and received consent from her employer to enter the arrangement. D. No, because bonuses from clients for doing her job well do not create any conflict of interest. I picked C. The answer is A. Can any ethic guru enlighten me.

I think it’s because he did not receive written consent…

Here’s an excerpt from one of the similar questions from book 1: “…violated Standard IV(B) by failing to inform his employer IN WRITING of this supplemental, contingent compensation arrangement. The nature of the arrangement could have resulted in PARTIALITY to the specific client’s account, which could have detracted from the portfolio anaylst’s performance with respect to other accounts he handles for his company. He/she must obtain the consent of his employer to accept such a supplemental benefit” yes i think the key here is WRITTEN CONSENT.

any additional compensation, written consent from the employer is a must requirement. it does not matter whether you give written notice or no

Always written consent. If a question states VERBAL, it’s a definite clue!