Sunday, May 23, 2010

CFA Institute Research Objectivity Standards: Standard 6, Relationships with Subject Companies

Sharing any section of a research report
  • Sharing any section of a research report that might commnicate the analyst's proposed recommendation, rating, or price target with the subject company is prohibited by the Standards.
  • Sharing only the part of the analyst's report on the subject company that provides factual information (e.g. with the subject company's management) is allowed.


Allowing a corporate issuer to pay for an analyst's travel expenses:
  • Violation of CFA Institute Research Objectivity Standards: Standard 6, Relationships with Subject Companies.
  • Violation of CFA Institute Standard I(B), Independence And Objectivity.

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