Gifts: 2 situations Gifts from clients less likely to affect independence and objectivity. However gifts for future performance might affect – at the cost of other clients right? Situation1: ClientP gifts 1-week cruise for past performance - No violation Situation2: ClientF announces 2-airtickets to Hawaii for performance exceeding 2% the benchmark - Yes violation Qn: How about if ClientP’s gift could trigger off a signal that she is a rewarding client?
i think you get it…not sure what your question means…
I mean Situation1 has an equal information in affecting the independence and objectivity of the analyst – rewarded in the past so will receive decent compensation for future performance (such as 1-week cruise) – Critique this