A client offers a high-value gift for a favorable service outcome. How should the CFP respond?

• A. Accept the gift without question.
• B. Decline if it could influence advice; or seek supervisor approval; ensure gifts do not create bias; document.
• C. Hide the gift to avoid responsibility.
• D. Offer additional services in exchange.

Answer: (B)

Gifts from clients create potential conflicts of interest and can undermine objectivity. The right approach is to prevent any real or perceived bias by handling the gift carefully: if there’s any chance the gift could influence the advice, decline it; or, if your firm policy allows, seek supervisor approval and follow the established process to ensure the gift won’t bias the recommendations. It’s also important to document what happened—the value of the gift, the discussion, the decision, and any approvals—so there’s a clear, transparent record. Accepting high-value gifts or arranging outcomes in exchange for favorable treatment violates fiduciary duties, so it’s appropriate to manage or refuse the gift and maintain professional boundaries.