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Frank Henry, CFA, works as an investment manager at Beta Financials. One of his clients offered him a free trip to Mauritius for excellent performance, which Henry accepted. Henry’s boss recently learned about this arrangement from another employee, but did not do anything about the arrangement, as the client was very important to the firm. Which of the following is most likely?

A Henry violated Standard IV (B): Additional Compensation Arrangements and his boss violated Standard IV (C): Responsibilities of Supervisors.

•Henry violated Standard IV (B) by not obtaining written consent from his employer before accepting the gift.
• Henry’s boss violated Standard IV (C) by failing to take appropriate action