Which guideline best describes the handling of gifts from clients or third parties?

• A. Gifts may be accepted without disclosure.
• B. Gifts from clients or third parties must be disclosed and kept within reasonable limits.
• C. Gifts may be accepted even if they exceed reasonable limits.
• D. Gifts are always prohibited.

Answer: (B)

Handling gifts from clients or third parties hinges on preserving independence and avoiding conflicts of interest. The best guideline is to disclose gifts and keep them within reasonable limits. Disclosure makes any potential influence visible to supervisors or colleagues, enabling appropriate oversight and ensuring the relationship remains transparent. Keeping gifts within reasonable limits reduces the risk that the gift could obligate you or be perceived as obligating you, which helps maintain objective, client-centered advice.

Gifts that aren’t disclosed can create or appear to create a conflict of interest, and gifts that exceed reasonable limits can unduly influence decisions or erode trust. Saying gifts are always prohibited is too rigid for many professional contexts, and allowing gifts without disclosure or letting large gifts slide past limits undermines ethical standards.