hard · CFA Level I ethics
A senior analyst at Lumen Credit moves to a new firm. On her first day, she issues a 'Buy' recommendation for a former coverage target, Nadir Components, using the same price target and rationale she had established at her previous firm. She does not have access to her old research files but is confident in her memory of the data. This action:
- Violates the Standard because she must recreate the supporting research basis from public sources before re-issuing.
- Is compliant because her expertise and memory provide an adequate basis for her professional opinion.
- Is compliant as long as Nadir Components' fundamentals have not materially changed since her departure.
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