which one is the answer

Tom Smith, CFA, has managed the account of Lockham for the past decade and has a very good relationship with her client. Lockham has a beach house in Hawaii and offers Smith and his family two free weeks at the house as a reward for the excellent returns generated in her account. Smith is so busy at work he does not tell anyone where he is going for vacation. When accepting Lockham’s offer, Smith least likely violates the CFA Institute Standard relating to: A. Loyalty to Employer. B. Disclosure of Conflicts. C. Independence and Objectivity. D. Additional Compensation Arrangements. I don’t have the answer, that’s why I’m asking,

A he needs to disclose the additional compensation to his employer and get permission because it may compromise his independence

the answer says The Standards require that members not accept gifts or compensation that might reasonably compete with their employer’s interest unless they obtain written consent from all parties involved. Arrangements such as that offered to Pederson may cause a conflict of interest or result in partiality that could impede Pederson’s independence and objectivity. i picked A but i have no idea if it was right

why wouldnt you say d?

d would have been my 2nd choice. i couldn’t figure out if it was a gift or compensation.

so the answer says: The Standards require that members not accept gifts or compensation (that’s ref. to answer C) that might reasonably compete with their employer’s interest (that’s ref. to answer B) unless they obtain written consent from all parties involved. Arrangements such as that offered to Pederson may cause a conflict of interest or result in partiality that could impede Pederson’s independence and objectivity(that’s ref. to answer D) . The only one left out is answer A.

I would go with D… becos the question explicitly states that this offer was “a reward for the excellent returns generated in her account”

ridiculous I got 6 problems wrong for that very reason today “least likely” i get to eager when i think i really know an answer

The question asks for the least likely violation of standards. All the other answers (except A) is violated.

When you’ll do questions on paper, “least likely” would be a lot more striking, especially if you underline it:)

I say it’s C. Independence & Objectivity since it’s the “least likely” of all 4. Violates A) since he needs to get written permission from employer in order to accept outside compensation (soft or hard dollar) arrangements Violates B) since he does not disclose the possible conflict of interest Violates D) for obvious reasons above (additional compensation arrangements) Leaving you C). I feel like Independence & Objectivity mainly refers to things such as paid-research assignments, beneficial relationships, etc. Since she’s managing a client account, I don’t see how it might jeopardize his independence & objectivity not too sure though.

C is really a good candidate

I would have said C b/c you can be rewarded for past performance w/o it being a violation…