INVESTMENT ANALYSIS, RECOMMENDATIONS, AND ACTIONS

INVESTMENT ANALYSIS, RECOMMENDATIONS, AND ACTIONS

A Diligence and Reasonable Basis
Members and Candidates must:
1 Exercise diligence, independence, and thoroughness in analyzing investments, making investment recommendations, and taking investment actions.
2 Have a reasonable and adequate basis, supported appropriate research and investigation, for any investment analysis, recommendation, or action.
B Communication with Clients and Prospective Clients
Members and Candidates must:
1 Disclose to clients and prospective clients the basic format and general principles of the investment processes they use to analyze investments, select securities, and construct portfolios and must promptly disclose any changes that might materially affect those processes.
2 Disclose to clients and prospective clients significant limitations and risks associated with the investment process.
3 Use reasonable judgment in identifying which factors are important to their investment analyses, recommendations, or actions and include those factors in communications with clients and prospective clients.
4 Distinguish between fact and opinion in the presentation of investment analysis and recommendations.
Record Retention
Members and Candidates must develop and maintain appropriate records to support their investment analyses, recommendations, actions, and other investment- related communications with clients and prospective clients.
CONFLICTS OF INTEREST
A Disclosure of Conflicts
Members and Candidates must make full and fair disclosure of all matters that could reasonably be expected to impair their independence and objectivity or interfere with respective duties to their clients, prospective clients, and employer. Members and Candidates must ensure that such disclosures are prominent, are delivered in plain language, and communicate the relevant information effectively.
Priority of Transactions

 

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