Although a firm may view the offer to fly its investment professionals on a third-party’s chartered jet as a cost-savings measure for the firm, the opportunity for conflict of interest arises. Special note is given to travel considerations. Likewise, members working to earn a new investment allocation must not offer such gifts as hiring incentives. However, the Code of Standards specifies that its members must not accept these offers, as they can unduly influence an investment professional’s obligations to remain independent and objective with regard to professional activities. In these cases, it is not uncommon for a third-party firm to offer gifts such as event tickets, paid conference attendance, or job referrals. It is recognized that third-party firms may seek to increase a CFA member’s dependence upon its research/market analysis, promotion of new securities offerings, or securities ratings. This includes advisors, analysts, and credit raters. Standard I(B) – Independence and Objectivity addresses the issue of gifts, payment, and favors that may compromise one’s objectivity and service to clients.
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