A CFA member accepts an expensive gift from a broker-dealer that could influence their judgment. Which Standard is violated?

• A. Standard IV.D Performance Presentation
• B. Standard II.A Material Nonpublic Information
• C. Standard I.B Independence and Objectivity
• D. Standard VI.B Priority of Transactions

Answer: (C)

The key idea is independence and objectivity. Accepting an expensive gift from a broker-dealer creates a real or perceived obligation that could bias how the member evaluates investments, recommends services, or represents performance. CFA Institute requires members to maintain independence and objectivity and to avoid gifts or inducements that could influence judgment. In practice, substantial gifts from a broker-dealer should be declined or disclosed and managed to prevent any bias or appearance of compromised judgment. The other standards address different issues—how performance is presented, how material nonpublic information is handled, or how orders are prioritized—none of which directly cover the risk created by a valuable gift that could sway decision-making.