An analyst who is a CFA Institute member receives an invitation from a
business associate’s firm to spend the weekend in a high-quality resort. In
order to abide by the Standards, the analyst should (may):
A)
refuse the invitation if the associate is from a firm he analyzes for his
employer.
B)
obtain written consent from his supervisor if the offer is contingent on
achieving a target investment return.
According to Standard I(B) Independence and
Objectivity, the analyst should refuse the invitation if it is from a firm the
analyst covers for his employer. The analyst can accept the invitation if it is
from a client but the analyst must get written consent from his employer if the
offer is contingent on future performance, to comply with Standard IV(B)
Additional Compensation Arrangements.
