Jack Wilson, CFA, provides financial advice to individuals and is also able to recommend securities transactions to such clients. On several occasions, Wilson has entertained clients. Wilson generally uses his expense account to charter a limousine service for six hours even though the meetings only last for two to three hours. With the remaining time, Wilson takes his wife to dinner, which he pays. Wilson often receives thank you gifts of nominal value from his clients and does not disclose this to his employer. Wilson has: A) Violated the Code and Standards with respect to limousine usage and with respect to acceptance of gifts B) not violated Code and Standards with respect to limousine usage but has violated with respect to gifts C) violated with respect to limousine but not acceptance of gifts Answer A I understand the limousine service is a violation. But I thought if the gifts were of nominal value (not expensive unless my definition of nominal is wrong) they need not be reported… Can anyone clear this up for me please? Thanks
He can accept th gifts but whatevr the value he has to disclose it to his employer…
I think its C. nominal value gifts not necessary to report
In a client relationship it is not necessary to refuse but it is necessary to report so the employer can determine if there is a potential for conflict.
I think it may be your definition of nominal. Nominal value usually refers to something that can be expressed in terms of dollars (or other currency). e.g. 5 concert tickets worth $50 each have a nominal value of $250.