CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

Regarding additional compensation arrangements, when is it appropriate to accept gifts, benefits, compensation, or consideration that competes with a member's employer?
A. when written consent is obtained from all parties involved
B. when it is in the best interest of the member to do so
C. when the supervisor is okay with the arrangement
Explanation: When written consent is obtained from all parties involved, it is appropriate to accept gifts, benefits, compensation, or consideration.

User Contributed Comments 7

User Comment
jpducros Do we really need the written consent of the client ?
Hishy No but I think it's just the 'most correct'/prudent answer of all the three. C is not correct because supervisor approval is not enough in some circumstances.
dream007 Pray tell, why would I need a written consent of the person giving the gift? Surely "all parties" include the donor?
jasonkwk yeah, why would I need written consent from the person giving me the gift.

It makes you and the giver looks like a fool.
hon132 It's more about acknowledging the conflict of interests between the two than the gifts (question also include other considerations). Both parties have to agree with the fact that you will be rewarded if you make a choice that screws the other party.
Inaganti6 tell the CFAI what it wants to hear.
Bewitcher lol nonsense
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