Explanation:
The GARP Code of Conduct prohibits members from making, accepting, or requesting any business gifts, tokens, favors, or entertainment that have a value that could be expected to influence their behavior or the behavior of others. Given the significant value of the car (USD 43,200), accepting it could be perceived as compromising her independence and objectivity, even though the contractual relationship has ended. Therefore, the most appropriate course of action in line with professional ethical standards is to completely reject the gift.
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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
Accept the gift but make sure that she informs her employer about it.
C
Reject the gift.
D
Reject the gift but request the client to redirect it to the bank itself.
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