Question

Long has been asked to be the keynote speaker at an upcoming investment conference. The event is being hosted by one of the third-party investment managers currently used by his pension fund. The manager offers to cover all conference and travel costs for Long and make the conference registrations free for three additional members of his investment management team. To ensure that the conference obtains the best speakers, the host firm has arranged for an exclusive golf outing for the day following the conference on a local championship-caliber course. Which of the following actions is least likely to violate Standard I(B)?

1) Accepting the offer and attending the conference
2) Declining the offer and not attending the conference
3) Accepting the offer but not attending the golf outing
4) Declining the offer but attending the golf outing

Answer 1

The least likely action to violate Standard I(B) is accepting the offer but not attending the golf outing. Declining the offer and not attending the conference is also an acceptable option.

Step-by-step explanation:

The least likely action to violate Standard I(B) is option 3) Accepting the offer but not attending the golf outing. Standard I(B) of the CFA Institute's Code of Ethics and Standards of Professional Conduct states that CFA Institute members and candidates should not accept gifts, benefits, or compensation that could compromise their independence and objectivity. Attending the conference is acceptable as it provides professional development opportunities, and declining the offer and not attending the conference also avoids any conflicts of interest. However, declining the offer but attending the golf outing could be seen as accepting a personal benefit from the investment manager, which may compromise independence and create a conflict of interest.