Hello,
I have a question regarding one of the ethics questions on the L2 exam which has left me puzzled for some time. Any feedback would be appreciated.
The gist of the question is as follow: ‘you are a research analyst who was written a report providing a recommendation after thorough due diligence. The report is going to print and will be mailed to all clients in the morning. That evening you come across material non public information which goes against your recommendation and can be taken as concrete evidence.’
You should
a) Issue the report
b) Not issue the report
c) Delay the issue of the report until further analysis has been completed (I don’t actually recall if this one of the options)
I would have thought that one should in fact issue the report (answer a) because you have conducted thorough due diligence and that failing to issue the report would be acting on material non public information.
Am I remembering the possible answers correctly? Is the general consensus that A is correct?
Thank you,
Andrew |