Investment Analysis - V(C) Record Retention

LOS

a. demonstrate the application of the Code of Ethics and Standards of Professional Conduct to situations of issues involving issues of personal integrity

b. distinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards

c. recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct

What is the primary directive of Standard V(C) Record Retention? Members and Candidates must develop and maintain appropriate records to support their investment analysis, recommendations, actions, and other investment-related communications with clients and prospective clients.

In addition to furnishing excellent reference materials for future work, what else does retaining research files play a key role in? 1. Research materials justify investment decisions under later scrutiny. 2. Files can serve as the ultimate proof that recommendations and actions, good or bad, were made based on the same methodology that drove the analyst’s decisions.

In what form should research record be stored? Doesn’t matter. Physical or digital is fine.

How long should research records be stored? CFA Institute recommends storing files for 7 years.

Do your research records belong to you or the firm? Can you take them if you leave the firm? Research records belong to the firm and you can’t take them with you.