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Answer: No, because she fails to obtain approval before accepting the tickets
## Explanation Under CFA Institute Standard I(B): Independence and Objectivity, members must maintain independence and objectivity in their professional activities. **Key violations:** - Fourier accepted an expensive gift from a potential fund manager, which could compromise her independence and objectivity - She obtained approval **after** accepting the tickets, but Standard I(B) requires obtaining approval **before** accepting gifts that could reasonably be expected to compromise independence - The fact that gift-giving is an accepted practice in the local culture does not override the requirement to maintain independence - The expensive nature of the tickets makes them particularly problematic **Correct procedure:** - Should have obtained written approval from her employer **before** accepting the gift - Should have considered whether the gift could reasonably be expected to compromise her independence Therefore, Fourier's actions are not consistent with the Standards because she failed to obtain approval before accepting the tickets.
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Lisa Fourier, CFA, works at an investment firm where she is responsible for hiring outside fund managers. During an overseas visit at the office of a potential fund manager, she is offered expensive tickets to a sporting event as a gift from the fund manager. Fourier knows that offering and accepting gifts is an accepted business practice in the fund manager's country. As required by her firm's policy, she obtains written approval from all parties involved after accepting the tickets.
Are Fourier's actions consistent with the Standards?
A
Yes
B
No, because she accepts a gift from a potential manager
C
No, because she fails to obtain approval before accepting the tickets
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