Reading 4: CFA Institute Research Objectivity Standards-LOS

Bill Williams, CFA, has been tasked by his firm, Null Investments, to ensure that the firm’s policies and procedures allow its research department to maintain its independence and objectivity. One of the objectives Williams has outlined for Null’s policies and procedures is that they should promote the establishment of a non-governmental regulatory body. This body will be responsible for creating standards that assure that research firms produce independent and objective research. Is this objective for Null’s policies and procedures consistent with the objectives of the CFA Institute Research Objectivity Standards (ROS)?

In a meeting with her firm’s research director, Janice Mitchell, a proponent of the CFA Institute Research Objectivity Standards (ROS), stated that two of the key objectives of the ROS were to:

1. Assist in meaningful, fair, specific, and complete disclosure of both possible and real conflicts of interest.
2. Create voluntary reporting of research practices that promote independent and objective research to CFA Institute on an annual basis.

Determine whether Mitchell is correct or incorrect with regard to her statements about the objectives of the ROS.