1. XYZ, CFA is portfolio manager. On Saturday, one of his clients invited him and his wife to be his guests at his luxury suite for a major football playoff game, which they did. XYZ told his supervisor on Monday that he had attended the game with the client and that the suite was luxurious.
a) not violated standards
b) violanted standards because disclosure must be in writing
c) violated the standard because he must disclose the gift prior to accepting
Why the correct answer is a) ? It must be disclosed in writing so for me it should be b)
Assuming the invitation was due to past performance results only disclosure to the employer is necessary (not necessarily in written form). Written disclosure and consent from the employer is only necessary for arrangements regarding future performance results. Regards, Oscar
The worst thing is that I have seen similar question before - in curriculum / cfai questions on their site / wherever and there all gifts had to be disclosed in writing prior to acceptance or subsequently.
And those different treatments just make me confused and helpless
How I got it (no guarantee that this is correct though):
Gifts from clients: past performance: disclosure to employer future performance: written disclosure to employer and written consent from employer
Gifts from companies (e.g. companies you research): general rule is not to accept any gifts (independence and objectivity), except merely token gifts if not forbidden by the employer
Gifts from referrals: full disclosure to clients and employer