incomprehensible ethics on CFAI mock company, question, research, corporate, afternoon

anish

In the CFAI afternoon ethics question #6, why is the correct answer B?

In what way is this policy inconsistent with the CFA Research Objectivity Standards?

Policy 3. In their relationships with corporate issuers, analysts are prohibited from sharing with or communicating to a subject company, prior to publication, any section of a research report.

whats wrong with this?

god i hate these questions soooo much

brainsX

The standard says that they can share stuff other than certain things like Ratings, Outlook (etc stuff which I dont remember very clearly). I guess this is allowed to gets facts checked. Very complicated though.

RMontgomery

"In their relationships with corporate issuers, analysts are prohibited from sharing with or communicating to a subject company, prior to publication, any section of a research report. "

...that might communicate the research analysts proposed recommendation, rating or price target

p. 168, Book I, CFAI Text

neil1234

I think for CFA Research Objectivity Standards you should or are at least allowed to confirm the factual information in your research report with the subject company