Standard I(B)

Question 1

What is Standard I(B)

Answer 1

Professionalism - Independence and Objectivity

Question 2

Explain Standard I(B)

Answer 2

use reasonable care and judgement to achieve and maintain independence & objectivity

must not offer/solicit/accept any gift/benefit/compensation that could compromise independence & objectivity

Question 3

Sell side research & buy side clients

Answer 3

Southside face pressure from by side (e.g. institutional investors) who rely heavily on the research for investment decisions

Question 4

IB relationships

Answer 4

Pressure on analyst to issue favourable reports on IB clients

Separate reporting structures for research and IB personnel

Question 5

issuer paid research

Answer 5

Concerns about “independent analysts” producing reports for companies if they have been paid by subject company for research

Question 6

Travel funds

Answer 6

Use commercial transfer instead of accepting paid arrangements from external entities

Clear disclosure of travel arrangements and potential conflict of interest