Are Reports from a Self-described “CFA Candidate” Valid?

Are Reports from a Self-described “CFA Candidate” Valid?

 

Mission Statement

To lead the investment profession globally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society.

Vision

We aspire to a CFA Institute that:

  • Serves all finance professionals seeking education, knowledge, professional development, connection, or inspiration.
  • Leads the investment profession’s thinking in the areas of ethics, capital market integrity, and excellence of practice.

 

Now let’s look at what a fully credentialed CFA is supposed to include in a report: 

Here are the standards for reports authored by Chartered Financial Analysts.  I will give you the link to the full PDF document from which the quoted text below is taken. Do note that this is the entire section from “Issue Paid Research.”

Issuer Paid Research
A. When engaging in research paid for, directly or indirectly, by the corporate issuer, analysts must:
  1. Only accept cash compensation for their work and must not accept any compensation contingent on the content or conclusions of the research or the resulting impact on share price.
  2. Disclose in the report:
    • The nature and amount of the compensation received for drafting the report.
    • The nature and extent of any personal, professional, or financial relationship they, their firm or its parent, subsidiaries, agents, or trading entities may have with the subject company, its personnel, parent, subsidiaries, or agents.
    • Their credentials, including professional designations and experience that qualifies them to produce the report.
    • If it is a one-time report or if the analyst will provide continuing coverage. If the analyst provides continuing coverage, they must disclose how to obtain updates.
    • Any matters that could reasonably be expected to impair their objectivity in drafting the report.
    • History of recommendations for the subject-company and number and distribution of recommendations for all companies they cover.
  3. Certify that the analysis or recommendations contained in the report, if any, represent the true opinions of the author or authors.
  4. Refrain from engaging in, or receiving compensation from, any investment banking or corporate finance-related activities with the issuer.
  5. Ensure that the analyst(s) do not share information about the subject company or the timing of the release of a research report with any person who could have the ability to trade in advance of (“front run”) the release of a report.
  6. Refrain from trading in the shares of the subject company in advance of the release of a report or update.
  7. Refrain from trading in a manner that is contrary to, or inconsistent with, the employees’ or the firm’s most recent published recommendations or ratings, except in circumstances of unanticipated extreme financial hardship.
  8. Abide by all laws, rules, and regulations that apply to registered or regulated analysts.

 

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