Assessing Compensation Arrangements in Research Objectivity

Very Easy Research Objectivity Standards Compensation Arrangements

Jordan is an analyst at a large investment firm. His compensation is tied to the performance of the investment products he recommends to clients. Recently, he was encouraged by his supervisor to prioritize certain investment products that would yield higher commissions for the firm, not necessarily based on their performance or suitability for the clients.

According to ethical standards regarding research objectivity, what is most true about Jordan's compensation arrangement?

Jordan's compensation arrangement is acceptable as long as the firm discloses this information to clients.

Jordan's compensation arrangement may compromise his objectivity and integrity as an analyst.

Jordan should prioritize the firm's profitability over client interests.

Hint

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