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CFA Level I · CFA Level I Exam · Guidance for Standard I: Professionalism

An analyst at a brokerage firm is offered a small branded pen set and a modest lunch by a company she covers. Under Standard I(B), the analyst's most appropriate course of action is to:

The analyst may accept the modest pen set and lunch. Standard I(B) guidance says modest gifts and entertainment are acceptable, provided they could not reasonably be expected to compromise independence and objectivity. Only lavish or influence-seeking benefits must be rejected.

  1. Aaccept, because modest gifts and entertainment are acceptableCorrect
  2. Brefuse all contact with the company's management
  3. Caccept only if the company also gives the same gift to every other analyst covering it

Explanation

The guidance states that modest gifts and entertainment are acceptable, though care must be taken to resist pressures that conflict with client interests. Refusing all contact is not required. Whether other analysts receive the same gift is irrelevant to whether independence is compromised.

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