Level III Core · Guidance for Standard V: Investment Analysis, Recommendations, and Actions

Group Research and Decision Making Under Standard V(A)

Updated 8 October 2026 · Fact-checked

Under Standard V(A), you may still use group research that reflects a consensus you disagree with, if the work has a reasonable basis and you are comfortable it is sound. If you cannot support the recommendation, you should ask that your name be removed from it. That is dissociation.

Understand Group Research and Decision Making

Standard V(A) requires you to exercise diligence, independence and thoroughness, and to have a reasonable and adequate basis for any investment analysis, recommendation or action. That basis comes from research and investigation.

Much research in firms is done by teams or committees. The final recommendation is often a consensus. Not every member agrees with every part. The Standard does not demand that every member holds the same view as the group.

The test is whether the group's recommendation has a reasonable and adequate basis, and whether you are comfortable that it does. If the process was diligent and the conclusion is supported, you may be associated with it even if you would have chosen differently. Disagreeing on a judgement call, such as a target price or a rating, is not a violation.

The problem arises when the group's view is not supported by a reasonable basis, or when you believe it is misleading. Then you cannot let your name stay on it. You should dissociate from the recommendation. In practice, you ask that your name be removed from the work, so clients are not led to think you endorse it.

If you did not take part in the research and you simply present or use the group's output, you rely on the group only if you have made a reasonable inquiry that it is sound. Dissociating does not stop you from keeping your own view. It protects you from misrepresenting it.

Key rules to remember

Core rule: Group consensus + reasonable and adequate basis + member comfortable it is sound = member may remain associated; Disagreeing with the group's conclusion does not by itself breach Standard V(A).
Dissociation rule: No reasonable basis, or member cannot support the recommendation = member should ask that their name be removed; Dissociation means refusing to be associated with the recommendation. It is not a duty to publish a rival view.
Reasonable basis test: Diligence + independence + thoroughness, supported by research and investigation; This is the standard the group work must meet. The test applies to the work, not to whether it matches your opinion.

How to solve Group Research and Decision Making questions

Use this sequence for any vignette where a member's view differs from a group or committee recommendation.

1Identify who the member is: a contributor to the group research, or someone who only uses its output.
2Identify the nature of the disagreement: a judgement difference (rating, target, weighting) or a concern about the quality or honesty of the work.
3Ask whether the recommendation has a reasonable and adequate basis, meaning proper research, investigation and support.
4If the basis is sound and the member is comfortable, conclude that the member may remain associated and does not need to dissociate.
5If the basis is lacking or the member cannot support it, conclude that the member should dissociate, asking that their name be removed.
6Check that the member is not presenting the group view as personally held when it is not, which would also raise misrepresentation concerns.
7State the conclusion in one line and give the reason in the fewest words that earn the points.

Quickest way: Sound basis or not?

When to use it: Use it when the options turn on whether the member must keep quiet, dissociate or may stay on.

Ask: is the group work supported by a reasonable basis?
Yes and the member is comfortable: stay associated. Disagreement alone is fine.
No, or the member cannot support it: dissociate by having their name removed.
Reject options that say the member must change their view to match the group, or must always dissociate when they disagree.

Common mistakes in Group Research and Decision Making

Thinking any disagreement with the group forces dissociation.
Students read 'disagree' as 'cannot support'.
Fix: Disagreement on a judgement call is allowed when the basis is reasonable and the member is comfortable.
Thinking the member must change their own opinion to match consensus.
Students confuse group consensus with a duty of conformity.
Fix: The Standard does not require agreement. It requires a reasonable basis and honest association.
Treating dissociation as a duty to publish a competing view.
Students mix it up with duties on communication to clients.
Fix: Dissociation means having your name removed from the work, not issuing your own report.
Ignoring the quality of the group's research.
Students focus on the member's feelings rather than the basis for the recommendation.
Fix: Start with whether the work is diligent and supported. That decides the outcome.
Assuming a member who only uses group research has no responsibility.
Students think relying on others removes diligence duties.
Fix: A member relying on group output should make reasonable inquiry that it is sound before using it.

Worked examples

Example 1

A senior analyst sits on an investment committee that rates a stock Buy. The analyst preferred Hold because she thinks the target price is slightly high. The committee reviewed financial statements, ran valuation models and met management. Does Standard V(A) require her to dissociate?

Show the solution

She contributed to the research, so the question is whether the basis is sound.
The committee did proper research: financials, valuation and management meetings.
Her disagreement is a judgement on the rating and target price, not a concern about the quality of the work.
If she is comfortable the work is sound, she may remain associated.

Answer: No. The recommendation has a reasonable and adequate basis, and a difference of judgement does not require dissociation.

Example 2

A team recommends a Buy on a small company. One member finds the team relied on a single unverified rumour and did no analysis of the company's financials. She believes the recommendation is unsupported. What should she do under Standard V(A)?

Show the solution

The concern is about the basis, not a judgement call.
The recommendation lacks reasonable and adequate support: no real research or investigation.
She cannot be comfortable that it is sound.
She should ask that her name be removed from the recommendation, which is dissociation.

Answer: She should dissociate by asking that her name be removed from the recommendation, because it has no reasonable basis.

Exam tips

Look for the signal word: if the vignette says the research was thorough, the answer is usually that the member may stay associated.
If the vignette says the basis is missing or the member cannot support it, the answer is dissociation.
Watch for options that say the member must always agree with the group or must always publish a dissenting view. Both overstate the Standard.
In essay answers, give the verdict first, then the one reason, such as reasonable basis or no reasonable basis.

Group Research and Decision Making in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Group Research and Decision Making: frequently asked questions

Can a CFA member disagree with a committee recommendation?

Yes. Standard V(A) does not require every member to agree with the group. If the recommendation has a reasonable and adequate basis and you are comfortable it is sound, you may remain associated with it.

What does dissociation mean under Standard V(A)?

It means asking that your name be removed from the recommendation or research. You do this when you cannot support it or it lacks a reasonable basis. It does not mean you must publish your own competing view.

When must I dissociate from group research?

When the work does not have a reasonable and adequate basis, or when you are not comfortable that it is sound and you cannot support it. A mere difference of judgement on a rating or target is not enough.

Does relying on group research remove my duty of diligence?

No. If you use group output without having done the research, you should make reasonable inquiry that it is sound before relying on it.