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Richard Colson is a research analyst at Aegis Capital. Â One of his target companies, Ricard Industries, recently became a client of Aegis investment banking division. Â 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.
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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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