Jimmy Deininger, CFA, manages several client portfolios. One of his clients offers him use of a cabin in a vacation spot because the client's investment results under Deininger's management have exceeded the client's goals. Deininger discloses the gift to his employer. With reference to the Standards of Practice, Deininger:

Gifts from a client are distinguished from gifts from entities attempting to influence the portfolio manager's behavior, such as a broker. Deininger has complied with Standard I(B) Independence and Objectivity because he disclosed the gift from the client to his employer. This requirement is in place so that the employer can monitor the situation to guard against any favoritism towards the gift-giving client. The Standards do not require disclosing this gift to other clients. Permission would be required if the client's gift was to be based on future account performance.