Investment Banking Conflicts of Interest in Research

Medium Research Objectivity Standards Investment Banking Relationships

Emily is an equity research analyst at a prominent investment firm. Her firm has recently entered into an investment banking agreement with TechInnovate Inc., a company she covers. Emily has been tasked to prepare a detailed report on TechInnovate for potential investors. As she prepares her analysis, Emily discovers that she has been invited to a confidential training session where the management of TechInnovate will discuss their future strategies and upcoming projects.

According to the CFA Institute's Research Objectivity Standards, what should Emily do to maintain her professional integrity and objectivity regarding her research on TechInnovate?

Accept the invitation to the training session, as it will provide valuable insights that enhance the quality of her research.

Decline the invitation to the training session and inform her supervisor about the potential conflict of interest.

Attend the training session but make sure to disclose any relevant information gained in her report.

Hint

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