Research Report on Britland: Best Course of Action for a Junior Analyst

The Best Course of Action for Writing a Research Report on Britland

Prev Question Next Question

Question

Jamison is a junior research analyst with Howard & Howard, a brokerage and investment banking firm. Howard & Howard's mergers and acquisitions department has represented the Britland Company in all of its acquisitions for the past 20 years. Two of Howard & Howard's senior officers are directors of various Britland subsidiaries. Jamison has been asked to write a research report on Britland. What is the best course of action for her to follow?

Answers

A. Jamison should not write the report because the two Howard officers are constructive insiders.

B. Jamison may write the report but must refrain from expressing any opinions because of the special relationships between the two companies.

C. Jamison may write the report if she discloses the special relationships with the company in the report.

D. Jamison may write the report so long as the officers agree not to alter it. C

Show Answer

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

Explanation

The question involves Standard IV (B.7), Disclosure of Conflicts to Clients and Prospects. There are two conflicts of interest that must be disclosed: (1) the company is a client of Jamison's employer, (2) two directors of the company are senior officers of her employer. As long as the relationship the analyst's employer has with the company is disclosed, the analyst is not prevented from writing a report. She can or not express opinions, which is irrelevant to her duty to disclose a conflict of interest, which is the relationship between the two companies.

Prev Question Next Question