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Question:

Diane Harris, a CFA Institute member, is a portfolio manager for Worldwide Investments. One of her clients has offered her the use of his condominium in Hawaii if the returns on his U.S. equities account beat their benchmark on a risk-adjusted basis. Harris informed her manager of all terms of this agreement in writing and received verbal consent to the arrangement before accepting the offer. Did Harris violate the Standards?

A Yes, because written consent from her employer is required.
Explaination

Standard IV(B) Additional Compensation Arrangements requires that members and candidates obtain written consent from their employers to enter into the agreement for additional contingent compensation from a client. Harris only received verbal consent. The concern is that such an arrangement might induce Harris to give partiality to this clients portfolio over those of her other clients.