Richard Colson is a research analyst at Aegis Capital. One of his target companies, Ricard Industries, recently became a client of Aegis investment banking division. Due to the potential conflict of interest, according to Standard I(B) Independence and Objectivity, Colson should most likely: A. discontinue research on Ricard and not issue a report. B. continue the research, and issue a report on Ricard that contains a recommendation consistent with their findings. C. continue the research, and issue a report on Ricard that contains only factual information, but no recommendation.

The correct answer is Option C.Due to the potential conflict of interest, Colson should not issue a recommendation on Ricard, as he could be perceived as lacking independence and objectivity.

Question Of The Week: Level 2 - Ethics (3) - CFA Level 2

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- MarkMeldrum
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  27 Mar 2020 at 8:56 am
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  Richard Colson is a research analyst at Aegis Capital. One of his target companies, Ricard Industries, recently became a client of Aegis investment banking division. Due to the potential conflict of interest, according to Standard I(B) Independence and Objectivity, Colson should most likely:
  - A. discontinue research on Ricard and not issue a report.
  - B. continue the research, and issue a report on Ricard that contains a
    recommendation consistent with their findings.
  - C. continue the research, and issue a report on Ricard that contains only
    factual information, but no recommendation.
- MarkMeldrum
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  - Undecided
  30 Mar 2020 at 6:34 pm
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  The correct answer is Option C.
  
  Due to the potential conflict of interest, Colson should not issue a recommendation on Ricard, as he could be perceived as lacking independence and objectivity.
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