Research Objectivity and Investment Banking Relationships

Hard Research Objectivity Standards Investment Banking Relationships

As a financial analyst at a reputable investment firm, you are responsible for providing research reports on publicly traded companies. Recently, your firm has entered into an investment banking relationship with XYZ Corp., which you are also required to cover in your research. Understanding the implications of this relationship on your research objectivity is crucial.

According to the CFA Institute's Research Objectivity Standards, what should you primarily ensure regarding your research on XYZ Corp. given the new investment banking relationship?

Your research and recommendations should be strictly based on empirical data and not influenced by the firm’s investment banking relationship.

You should refrain from issuing any research reports on XYZ Corp. to avoid any conflicts of interest.

You must disclose the investment banking relationship in your research reports but can base your investment opinion on subjective assessments.

Hint

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