
Answer-first summary for fast verification
Answer: Yes, because he recommends the same stock he recommended at his previous employer
White's actions violated the Standards because he recommends the same stock he recommended at his previous employer without conducting new analysis. According to CFA Institute Standard V(A) - Diligence and Reasonable Basis, investment recommendations must have a reasonable and adequate basis supported by appropriate research and investigation. Even though White was confident in his previous analysis, circumstances may have changed since he left BI, and he should have conducted fresh research to ensure the recommendation remains valid. Reusing old research without updating it violates the requirement to maintain diligence in investment analysis.
Author: LeetQuiz Editorial Team
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Did White's actions violate the Standards?
A
No
B
Yes, because he issued the buy recommendation without supporting documentation
C
Yes, because he recommends the same stock he recommended at his previous employer
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