Using Third-Party Research in Investment Analysis

Hard Cfa Institute Code And Standards Investment Analysis - Communication

As a portfolio manager, you are evaluating potential investments for your client’s portfolio. In doing so, you receive proprietary research from a third-party analyst. The research contains insights that could significantly benefit your investment strategy.

According to the CFA Institute's Code of Ethics and Standards of Professional Conduct, specifically concerning the use of third-party research and communication with clients, which of the following actions would be the most appropriate for you to take before incorporating this information into your investment analysis?

Disclose to your client that you have received third-party research and that you plan to use it in your investment strategy.

Integrate the insights from the third-party analyst into your analysis without any disclosure, assuming it benefits your investment strategy.

Assess the credibility of the third-party research and ensure it aligns with your own analysis before communicating any results to your client.

Hint

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