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

Add A Reply

This topic has 1 reply, 1 voice, and was last updated Mar-206:34 pm by MarkMeldrum.

Author

Posts
- MarkMeldrum
  Participant
  - Undecided
  30 Mar 2020 at 6:34 pm
  Up
  0
  ::
  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.
Author

Posts

Viewing 0 reply threads

You must be logged in to reply to this topic.