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Answer: Accept the gift because the contract has lapsed.
Based on the information provided, Jessica should **not accept the gift** even though the contract has lapsed. This situation raises ethical concerns regarding: - **Conflict of interest**: Accepting such a valuable gift (USD 43,200) could create the appearance of impropriety or influence future business relationships - **Professional standards**: Financial professionals are typically bound by codes of conduct that prohibit accepting substantial gifts from clients - **Reputation risk**: Accepting such a gift could damage both Jessica's personal reputation and the bank's reputation **Correct approach**: Jessica should politely decline the gift and report the offer to her compliance department or supervisor according to her firm's policies and procedures. The fact that the contract has ended doesn't eliminate the ethical obligations or potential conflicts of interest.
Author: Tanishq Prabhu
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Q.275 Jessica Pearson, FRM, works for an investment bank. At the end of a 2-year contractual relationship between the bank and one of its clients, the client offers Jessica a car worth USD 43,200 in part because of her outstanding expertise and professionalism throughout the period of the contract. How should Jessica proceed?
A
Accept the gift because the contract has lapsed.
B
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