Research analysts are not the only people who must be concerned with maintainingtheir independence. Members and candidates who are responsible for hiring and retaining outside managers and third-party custodians should not accepts gifts, entertainment, or travel funding that may be perceived as impairing their decisions. The use of secondary fund managers has evolved into a common practice to manage
specific asset allocations.
The use of third-party custodians is common practice forindependent investment advisory firms and helps them with trading capabilities and reporting requirements. Primary and secondary fund managers, as well as third-party custodians, often arrange educational and marketing events to inform others about their business strategies, investment process, or custodial services. Members and
candidates must review the merits of each offer individually in determining whetherthey may attend yet maintain their independence.