If an analyst does not agree with a stock rating (buy/sell/hold) and there were a group of analysts contributing - is it a violation for the analyst to still have their name on the report? This is an actual CFA question.
No, it isn’t a violation.
nopes, no violation he can have the name on the report and jot down the (his views) differences in opinions in the report.
Yeah, I think it would be recommended but not required to submit a memo detailing the differences to management if one feels the need to do so.
no problems with that only if you want you can have your name removed if you have a different opinion but think that the other recom. still is based on solid arguments you can have your name on it
Good stuff.
standard V(a) Group Research and Decision Making. Commonly, members and candidates may be part of a group or team that is collectively responsible for producing investment analysis or research. The conclusions or recommendations of the report represent the consensus of the group and are not necessarily the views of the member or candidate, even though the name of the member or candidate is included on the report. There may be many instances when the member or candidate does not agree with the independent and objective view of the group. If the member or candidate believes that consensus opinion has a reasonable and adequate basis, then the member or candidate does not necessarily have to decline to be identified with the report. There should be a presumption that the group members are independent and objective and have a reasonable basis for the opinions. If the member or candidate is confident in the process, the member or candidate does not have to dissociate from the report if it does not reflect his or her opinion. The member or candidate should, however, document his or her difference of opinion with the team.
Another one… An analyst is speaking at a conference about a stock he covers and is approached by a potential investor for a copy of the analyst’s most recent report. Does/Can the analyst charge a fee for the report or?
ROS - yes. Firms should provide the full research reports on the subject companies discussed to members of the audience at a reasonable price. At a minimum, the covered employee should disclose to the interviewer or audience whether a written research report is available to members of the audience who are not clients of the firm, the approximate cost, and how a viewer, listener, or reader might acquire the report.
yes, can charge a fee…I believe I recall the question. How about - If the analyst is being interviewed and has published a report on a stock with a buy rating…can he/she change his/her mind and tell the interviewer they think the stock should have a sell rating? (sorry to jack your thread)
^^Don’t think you can.
How about - If the analyst is being interviewed and has published a report on a stock with a buy rating…can he/she change his/her mind and tell the interviewer they think the stock should have a sell rating? (sorry to jack your thread) ^^Don’t think you can Nib is correct
I dont think so… Question: as per below, does one need to seek firm’s compliance department AND outside counsel? Seems like a stupid question but aren’t they all? III(E) Preservation of Confidentiality Application•David manages money for a family owned corporation. He also manages the individual portfolios of the CFO. Based on the corporation financial records, David believes that the CFO is embezzling money from the corporation and putting it into his personal investment account. •Comment: •David should check with his firm’s compliance department and outside counsel to determine whether applicable securities regulations require reporting the CFO’s financial records