Explanation:
Explanation:
Option A is correct because a gift from a client can be distinguished from gifts given by entities aiming to influence a member or candidate to the detriment of other clients. In a client relationship, the client has already established a compensation arrangement with the member, candidate, or their firm. Therefore, such a gift could be considered supplementary compensation.
Option B is incorrect because compensation arrangements should not directly link analyst remuneration to investment banking assignments in which the analyst may participate. This ensures independence and objectivity.
Option C is incorrect because portfolio managers must uphold the intellectual honesty of sell-side research. Threatening or retaliating against analysts, such as reporting them to covered companies, is unethical and undermines professional integrity.
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According to the Standard relating to independence and objectivity, which of the following statements is correct?
A
A gift from a client may be regarded as supplementary compensation.
B
Analyst remuneration should be directly tied to investment banking assignments.
C
Portfolio managers are permitted to report sell-side analysts to covered companies if changes in recommendations negatively impact client portfolios.