Ethics question

[Mizi]

In the event of an-above average portfolio performance, Irving zimmerman’s largest cliet has promised him a trip to Europe.
Client promised him to fund accomodatio, flight fare, and tourist activities:

In the context of the trip offred by his client, Zimmerman should:
a)decline offer
b)disclose offer to employer in writing
c)orally disclose offer to employer


According to the author the answer is b. Isnt a correct since the offer seems unreasonable

 

[S2000magician]

There’s no “unreasonable” restriction on compensation for past performance.

 

[Olayeancah]

B is the correct answer. A member/candidate must disclose any form of additional compensation arrangement to clients and employer. Also, they are required to disclose in writing any gift/compensation that could impair their independence and objectivity…..Standard I (B).

 

[olajideanuoluwa001]

the compensation is based on past performance, not future performance. If it were for future performance, it is expected of him to decline the offer as it is likely to impair his independence and objectivity, thus causing a disadvantage to other fee paying clients. But in this case, the compensation was based on already achieved performance, all he needs is to put in written to the compliance department about the offer.