Gifts received from client

[archived_user]

“A money manager receives a gift of significant value from a client as a reward for good performance
over the prior period and informs her employer of the gift.”
and then there is comment:
“No violation here because the gift is from a client and is not based on performance going forward,
but the gift must be disclosed to her employer. If the gift were contingent on future performance, the
money manager would have to obtain permission from her employer.”
I dont understand man, in some parts it’s strictly written that significant gifts must not be received, and now this…

 

[archived_user]

suppose a new client signed up for you as a portfolio manager.
if the gift is given after a year of good performance (as a form of gratitude), then yes, you’re allowed to receive but still need to disclose it
if the gift is given at sign up(as a “bribe” to ensure you put the client’s portfolio first above others), then no, you’re not allowed to receive it.
this is where you argue that both can be the same thing but we’re supposed to agree with CFAI’s point of views and can’t debate over this.

 

[archived_user]

And additionally what I collected about gifts:
if it is not from a client but from 3rd party (broker) you cannot accept
if you are the analyst you cannot accept from the subject company
regardless if your employer permitted

 

[archived_user]

I think the key is “lavishness”
Gift is ok but “lavish” gifts are not ok
Usually you can tell from the tone of the sentence

 

[archived_user]

Moosey wrote:
And additionally what I collected about gifts:
if it is not from a client but from 3rd party (broker) you cannot accept
if you are the analyst you cannot accept from the subject company
regardless if your employer permitted

This! Client, especially when not tied to future performance is uncomplicated. 3rd party can be dangerous to independence and objectivity, for instance broker

 

[archived_user]

I agree with you