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

An investment adviser regularly discusses portfolio changes with clients by phone and in emails but keeps no notes or copies of the communications. With respect to Standard V(C), the adviser is most likely:

The adviser is in violation of Standard V(C). Members must develop and maintain appropriate records to support investment analyses, recommendations, actions and other investment-related communications with clients and prospective clients, and this covers emails and discussions about portfolio changes, not just research reports.

  1. Acompliant, because only written research reports need to be retained
  2. Bin violation, because appropriate records must support investment-related communications with clientsCorrect
  3. Ccompliant, because clients can keep their own records of the discussions

Explanation

Standard V(C) requires members to develop and maintain appropriate records supporting their analyses, recommendations, actions and other investment-related communications with clients. Emails and call discussions about portfolio changes fall within that scope, and client-held records do not meet the duty.

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