Question #23
Reading: Reading 42.4 Standards of Professional Conduct Guidance for Standards IV
PDF File: Reading 42.4 Standards of Professional Conduct Guidance for Standards IV.pdf
Page: 10
Status: Incorrect
Correct Answer: A
Your Answer: B
Question
An analyst working at an investment firm has a client that rents limousines. The client tells the analyst that as long as he is the client's analyst, he can have free use of a limousine several times a year. The analyst needs to:
Answer Choices:
A. do nothing since the offer is not linked to the performance of the client's portfolio
B. explicitly refuse such an offer
C. inform his supervisor in writing of the offer if the analyst intends to accept the offer
Explanation
Standard IV(B) requires that members disclose to their employer in writing all benefits that
they receive in addition to their regular compensation for services they perform on behalf
of their employer. They also need to get consent from their employer in writing. The
written report to the employer should include the details of any written or oral agreement
for extra compensation. The analyst does not have to refuse the offer.
(Module 42.7, LOS 42: IV(B))