Question #2
Reading: Reading 42.1 Standards of Professional Conduct Guidance for Standards I
PDF File: Reading 42.1 Standards of Professional Conduct Guidance for Standards I.pdf
Page: 1
Status: Incorrect
Correct Answer: A
Your Answer: B
Question
Judy Gonzales is a portfolio manager with Brenly Capital and works on Johnson Company's account. Brenly has a policy against accepting gifts over $25 from clients. The Johnson portfolio has a fantastic year, and in appreciation, the pension fund manager sent Gonzales a rare bottle of wine. Gonzales should:
Answer Choices:
A. return the bottle to the client explaining Brenly's policy
B. present the bottle of wine to her supervisor
C. inform her supervisor in writing that she received additional compensation in the form of the wine
Explanation
By not returning the bottle she would be violating the Standard on disclosure of conflicts
to the employer, which states that employees must comply with prohibitions imposed by
their employer.