CFA CFA Level 1 Restricted List vs. Acceptable for Disclosure

Restricted List vs. Acceptable for Disclosure

  • This topic has 0 replies, 1 voice, and was last updated May-18 by Nasir.
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    • Nasir

      What conflicts put a company on the restricted list, vs which ones are ok to just put in a disclosure in a research report?

      My understanding is that if the firm is unwilling to give a negative (or positive) review because of e.g. an active deal, it goes on the restricted list, meaning facts-only, no recommendations. Further, any communication between firewalled departments is monitored/chaperoned by a compliance officer.

      If the author or anyone in the firm is personally linked (either by owning stock or serving on the covered company’s board), it’s ok to publish a recommendation, just with the respective disclosures.

      Anyone in the know, kindly confirm if the above is accurate.


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