Gifts from clients

CFA Level II
#1

Just to confirm: If a client offers you a gift for past performance, it needs to be disclosed. If the client offers a gift for future performance, you need written consent from the employer?

#2

I don’t think you can accept it at all for future performance, even with consent…it might make you bias towards other clients

#3

I think you can, but you must get consent.

#4

but just because employer gives you consent, you may still be biased and commit favorism. I thought I saw a question on one of the sample/schweser exam like that

#5

YOU CAN ACCEPT GIFTS FORM CLIENT WITH PERMISSION. YOU CANT ACCEPT ANYTHING FORM ISSUERS. PERIOD!

#6

You can accept gifts with consent from your employer. The idea is that you already have a compensation agreement set up between you and the client, so it’s less likely to be a conflict of interest as opposed to accepting gifts from, say, an issuer.

#7

If, for example, a client says “I’ll give you a week long vacation in my Aruban condo if you hit above 15% next year”, you will not be in violation if you get written consent from your employer.

#8

since the gift from the client is for performance, it’s looked at more like additional compensation, than a gift… need your employer’s consent…

#9

agreed with above, need consent to accept future performance.

#10

ozzy609 Wrote: ------------------------------------------------------- > If, for example, a client says “I’ll give you a > week long vacation in my Aruban condo if you hit > above 15% next year”, you will not be in violation > if you get written consent from your employer. not a violation of additional compensation or disclosure of conflicts violation of independence and objectivity

#11

Slash Wrote: ------------------------------------------------------- > ozzy609 Wrote: > -------------------------------------------------- > ----- > > If, for example, a client says “I’ll give you a > > week long vacation in my Aruban condo if you > hit > > above 15% next year”, you will not be in > violation > > if you get written consent from your employer. > > not a violation of additional compensation or > disclosure of conflicts > > violation of independence and objectivity According to Schweser (Exam 1PM, book 6), you can accept it with written consent.

#12

i’m sure i saw it in a schweser q-bank question. if it’s contingent on future performance, it causes the fiduciary to be more inclined to help out that client