An analyst who is a CFA Institute member receives an invitation from a business associate’s firm to spend the weekend in a high-quality resort. In order to abide by the Standards, the analyst should (may): A) do all of the actions listed here. B) refuse the invitation if the associate is from a firm he analyzes for his employer. C) accept if it is a client whose portfolio he manages. D) obtain written consent from his supervisor regarding the trip.
D
C
i’ll pick D to be safe
I’d say D too. It is either C or D for sure
Answer is A. According to Standard I(B), the analyst should refuse the invitation if it is from a firm the analyst covers for his employer. The analyst can accept the invitation if it is from a client and the analyst gets approval from his supervisor according to Standard I(B). According to Standard IV(B), the analyst must receive written consent regarding all monetary compensation and benefits they receive for their services. A lot of people will go wrong on this question if we just eye ball through the answers and pick one…
Thank God there’s no “all of the above” and “none of the above” type of questions on the actual exam.
FisherSU, Are you sure?
been there, done that kochunni69. CFAI is known for 2x4s but not all/none type of questions.
D - ARE YOU SURE IT IS A ???
daj224 Wrote: ------------------------------------------------------- > D > > > - ARE YOU SURE IT IS A ??? Yes, Gifts from business associates should almost always be rejected. Gifts from clients must be disclosed.
> The analyst can accept the invitation if it is from a client and the analyst gets approval from his supervisor according to Standard I(B) But Choice C says: accept if it is a client whose portfolio he manages So, this is not correct. He would accept only *if* he gets approval from his supervisor. This is a bad example.
OK THANKS. I guess I did not understand what business associate was