Independance and Objectivity

Does Standard1(B) allow analyst to accept transportation, lodging, expense, and compensation for writing a research report as long as she disclose such arrangement in her report?

I dont think so… the analyst has to pay for him/her self

I guess it depends on the options to choose from! :slight_smile: It is “recommended” to pay your own way… However, compensation from issuer-paid research should be limited, and the preference is a flat fee, without regard to conclusions or the report’s recommendation!

They are “allowed” to accept those items, but it is “recommended” that they pay for transportation and lodging themselves. Just a wording issue. Then if they do accept those items, they must disclose them

From what I have experienced and others on AF have to, the sample/mock exams really don’t word the ethic questions in a difficult way like Schweser does in Book 6/7…

If the analyst is in driving distance or with easy access to the locations he needs to visit, the analyst has to pay his expenses. If the access is remote, the analyst may accept lodging, transportation, but tot a lavish treatment. Say the analyst, together with other analysts, are invited by a company o a tour of say 5 locations, manufacturing plants in China. And the Company pays for transportation by private jet to those locations, for all analysts together. This would be acceptable since arrangements to travel to each individual location would be difficult and the travel time would be long. I think these types of expenses need not be disclosed in the report. But compensation always must be disclosed (nature, type, source).

map1 Wrote: ------------------------------------------------------- > If the analyst is in driving distance or with easy > access to the locations he needs to visit, the > analyst has to pay his expenses. If the access is > remote, the analyst may accept lodging, > transportation, but tot a lavish treatment. > > Say the analyst, together with other analysts, are > invited by a company o a tour of say 5 locations, > manufacturing plants in China. And the Company > pays for transportation by private jet to those > locations, for all analysts together. This would > be acceptable since arrangements to travel to each > individual location would be difficult and the > travel time would be long. I think these types of > expenses need not be disclosed in the report. But > compensation always must be disclosed (nature, > type, source). Exactly…unless it is a remote place or it is difficult to reach with transport…but in all other case the analyst must pay