A member accepts gifts from a client that could influence investment recommendations. Violation?

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Prepare for the Chartered Financial Analyst (CFA) Ethics Test. Study with flashcards and multiple choice questions, each with hints and explanations. Get ready for your exam!

Multiple Choice

A member accepts gifts from a client that could influence investment recommendations. Violation?

Explanation:
Accepting gifts from a client can create a real or perceived conflict of interest and undermine objectivity. The independence and objectivity standard requires professionals to avoid any situation that could influence or appear to influence their investment recommendations. Gifts, especially if they have value or could sway opinion, threaten that objectivity and violate this standard. The other options refer to different ethical issues—insider information, misrepresentation, or duties tied to loyalty and care—but none specifically address the risk of gifts compromising impartial judgment in recommendations.

Accepting gifts from a client can create a real or perceived conflict of interest and undermine objectivity. The independence and objectivity standard requires professionals to avoid any situation that could influence or appear to influence their investment recommendations. Gifts, especially if they have value or could sway opinion, threaten that objectivity and violate this standard. The other options refer to different ethical issues—insider information, misrepresentation, or duties tied to loyalty and care—but none specifically address the risk of gifts compromising impartial judgment in recommendations.

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