Yuan,CFA,is an equity research analyst for Golden Securities.During a meeting with several potential clients.
Yuan claims that his research report is based on the mosaic theory which combines the annual financial reports posted on the official website and the industry expert opinions about the market trend that have already been published.
In addition,Yuan’s friends often tell him some news that can influence the stock price prior to public.Does Yuan most likely violate the CFAInstitute Standards of Professional Conduct if he uses the information above?
AYes,he violates the standards with regard to industry expert opinion.
B Yes,he violates the standards with regard to friends’news.