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CFA Level 2
Ethical and Professional Standards

Analysis of Personal Investment Timing and Research Objectivity

Very Hard Research Objectivity Standards Personal Investments

John Smith is a portfolio manager at MegaInvest Corp. He is also an active investor with a personal portfolio that includes various publicly traded securities. Recently, John has been working on a research report that recommends investors buy shares of Company X, which is a tech startup with high growth potential. Before finalizing his report, John purchased a significant amount of Company X's shares in his personal account.

In his report, John discloses his personal investment in Company X, stating that he bought the shares within the last month. However, he does not mention that his investment was made shortly before he contributed to the research report. John's compliance officer has expressed concerns that this may compromise the report's integrity.

Which of the following statements best reflects whether John has adhered to the Research Objectivity Standards regarding personal investments?

Hint

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% Correct51%