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CFA Level I · CFA Level I Exam · Guidance for Standard V: Investment Analysis, Recommendations, and Actions

An analyst leaves Brightwater Capital to join a competitor. She wants to use a research report she wrote at Brightwater, but the supporting documentation is unavailable to her. Which action is most appropriate under Standard V(C)?

She should recreate the supporting records at the new firm, without using sources obtained from Brightwater absent its permission. Records are firm property, and prior research cannot be reused when its supporting documentation is unavailable.

  1. AUse the report after recreating the supporting records at the new firm, without relying on sources taken from Brightwater without its permissionCorrect
  2. BUse the report because she authored it and the conclusions remain her own work product
  3. CUse the report after copying only the model outputs from Brightwater's files for the new employer

Explanation

Records created for an employer are the firm's property. Historical research cannot be used if supporting documentation is unavailable, so the analyst must recreate the records at the new firm, and not from sources obtained at the previous employer without its permission. Options B and C ignore this.

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