Handling Gifts from Clients under CFA Standards

Very Hard Cfa Institute Code And Standards Responsibilities - Reference To Cfa

The CFA Institute Code of Ethics and Standards of Professional Conduct provides a framework for ethical decision-making in investment management. As a CFA charterholder, you are required to consider not only the letter of the law but also the spirit of the standards that govern your profession.

Imagine you are a portfolio manager at a firm that has recently adopted a new set of compliance policies aimed at enhancing transparency. These policies require all professionals to disclose any potential conflicts of interest proactively. One day, you receive a gift from a client that is of substantial value. While the gift does not violate the law, it may create a perception of impropriety. How should you proceed in accordance with the CFA Institute's Code and Standards?

Accept the gift, but ensure it's recorded in your compliance documentation to avoid any issues.

Politely decline the gift and report the offer to your compliance department to maintain transparency.

Accept the gift since it is customary in your culture, but disclose it after receiving it.

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