A portfolio manager accepts a luxury watch from a company whose stock she recommends. She does not disclose this gift to clients. This is most likely a violation of:

(A) Standard I(D) Misconduct
(B) Standard VI(C) Referral Fees
(C) Standard I(B) Independence and Objectivity
(D) Standard III(B) Fair Dealing

The answer is: (C) Standard I(B) Independence and Objectivity
Accepting valuable gifts can impair independence and objectivity if not disclosed.