Standard V(A) Diligence and Reasonable Basis requires members and candidates to exercise diligence, independence, and thoroughness in making investment recommendations and taking investment actions. The Standard does not require all potentially negative future events to be included in a research report. Standard V(B) Communications With Clients and Prospective Clients requires analysts to use reasonable judgment in deciding which factors are important to their analysis, recommendations, and actions and to disclose these to clients and prospects. Ensuring that investment performance claims are fair, accurate, and complete is required by Standard III(D) Performance Presentation.

(Study Session 1, LOS 1.b,c; Study Session 1, LOS 2.a,b,c)