Personal Investments and Research Objectivity

Very Hard Research Objectivity Standards Personal Investments

As a CFA charterholder working as an analyst at a mid-sized investment firm, you are conducting in-depth research on a publicly traded company, Company XYZ, in which you have held personal investments for over a year. Your firm is preparing to publish a research report that will recommend purchase positions to clients. During your analysis, you discover potentially market-moving information about Company XYZ that has not yet been disclosed to the public.

According to the CFA Institute's Research Objectivity Standards, what should you do in this situation regarding your personal investments?

You should immediately sell your personal holdings in Company XYZ before recommending a position to clients.

You can continue to hold your personal investment but must disclose your holdings in the report.

You should refrain from publishing the research until you have divested your personal holdings.

Hint

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