I(B): Independence and Objectivity

A client gives a gift of a new car to his investment adviser after earning a particularly good return on a recommendation from the adviser. Can the investment adviser accept the car as a gift without violating Standard I(B): Independence and Objectivity?

Correct. Acceptance of gifts from already established clients is considered an additional form of compensation, but the Standard requires disclosure of the gift to the adviser's employer for evaluation of the extent that the gift could impact the adviser's independence and objectivity.

Incorrect. The gift may be accepted, but the adviser must meet additional requirements.

Incorrect. Gifts from established clients are not prohibited under the Standard, but some additional disclosure must be met.

Yes, the gift can be accepted without any restrictions

Yes, as long as the adviser discloses the gift to his supervisor

No, the Standard disallows receiving any gifts from clients