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CFA Level 2
Ethical and Professional Standards

Research Objectivity and Investment Banking Relationships

Hard Research Objectivity Standards Investment Banking Relationships

In the context of the CFA Institute's Research Objectivity Standards, investment analysts are required to maintain objectivity in their research reports, particularly when there exists a relationship between the research analyst's firm and the subject company. Consider the following scenario:

An equity research analyst at a financial services firm is preparing a report on a company that is considering a merger with a client of the firm's investment banking division. The analyst has received requests from the investment banking team to develop a favorable outlook on the company to facilitate the merger discussions.

According to the CFA Institute's standards regarding research objectivity, which action should the analyst take to ensure compliance with ethical guidelines?

Hint

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