Ethics => Gift or no Gift

CFA Level II Ethics
#1

Dear All,

Could someone help me with this topic where I have been struggling since I started with the CFA.

In Ethics, there are several parts where they speak about Gift or compensation that you can receive from clients.

My question is :

When can we accept them without saying anything ?

When do we have only to disclose it to employer without written confirmation ?

When do we have to disclose to the employer and wait for a written confirmation from it ?

… and finally… When do we have to disclose it to employer and receive a written confirmation from both employer and person or entity that is offering us the gift ?

Many thanks for your precious help, I find CFA not so clear on this aspect.

Best Regards,

Doji

#2

If it’s from a client you need to disclose it. If a client says to you i want to pay you X amount of performance based fee, then you need permission from your employer. If the management of a stock you are researching wants to wine and dine you, you need your employer’s permission to accept anything and even then you should turn down any excessive gifts. Find some real examples from the book as I have probably missed something, let me know.

#3

Remeber that the gift should not compromise your independence and objectivity.