Ian O’Sullivan, CFA, is the owner and sole employee of two companies, a public relations firm and a financial research firm. The public relations firm entered into a contract with Mallory Enterprises to provide public relations services, with O’Sullivan receiving 40,000 shares of Mallory stock in payment for his services. Over the next 10 days, the public relations firm issued several press releases that discussed Mallory’s excellent growth prospects. O’Sullivan, through his financial research firm, also published a research report recommending Mallory stock as a “buy.” According to the CFA Institute Standards of Professional Conduct, O’Sullivan is most likely required to disclose his ownership of Mallory stock in the:
- press releases only.
- research report only.
- both the press release and the research report.
Solution
C is correct because members should disclose all matters that reasonably could be expected to impair the member’s objectivity [Standard I(B), Standard VI(A)].”
Also refer attached photo.
arent both solutions contradicting to each other as one is saying confilit of interest disclosure required only for clients & employer not for general public but the other one is saying disclosure shold be made to general public as well.
please clarify the doubt.
in blakes situation he is writing a social media post not a research report and he is writing it to everyone not his clients as he is retired. but O sullivan is a working professional so he has to disclose it.