Ethics
Build a reasonable research basis
A recommendation needs a reasonable and adequate basis. Third-party research can be useful, but outsourcing does not remove the responsibility to assess it.
Worked example
Before using a growth forecast, reconcile it to company filings, examine the forecast method and test material assumptions.
Common exam mistake
A source’s popularity is not proof of quality. Separate fact from opinion and retain records supporting the investment conclusion.
Syllabus connection: Application of the Code and Standards: Level II. 2026 official topic outline.
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