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CFA Level I · CFA Level I Exam · Guidance for Standard II: Integrity of Capital Markets

Which practice is most likely to strengthen an analyst's assertion that her conclusions came from appropriate methods rather than material nonpublic information?

Saving and documenting all research is the best practice. Evidence of the analyst's knowledge of public and nonmaterial nonpublic information supports the claim that her conclusions were reached through appropriate methods and not by using material nonpublic information.

  1. ASaving and documenting all of her researchCorrect
  2. BLimiting her sources to company investor relations staff
  3. CPublishing her conclusions only after clients have traded

Explanation

The guidance says analysts should save and document all research. Evidence of knowledge of public and nonmaterial nonpublic information supports the assertion that conclusions came from appropriate methods. The other options do not provide such evidence.

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