Standard V – Investment Analysis (2025 Level III CFA® Exam – Ethics – Reading 32)

Master CFA® Level III Ethics Standard V – Investment Analysis, Recommendations & Actions with this complete AnalystPrep walkthrough. In this lesson, Jim explains the CFA Institute Code of Ethics and Standards of Professional Conduct related to investment analysis, research recommendations, client communication, and record retention. This CFA Level III Ethics review covers diligence and reasonable basis, independent research, using third-party research, selecting external advisors, communicating risks and costs, distinguishing facts from opinions, and maintaining proper records. Follow along with CFA-style examples and exam-focused explanations to strengthen your understanding of Standard V. What you'll learn: ✓ Understand Standard V: Investment Analysis, Recommendations & Actions ✓ Learn the requirements for diligence, independence, and reasonable basis ✓ Understand how analysts should conduct appropriate research and investigation ✓ Learn how to evaluate third-party research and external advisors ✓ Understand the importance of testing investment models and recognizing limitations ✓ Learn best practices for group research and dissociating from unsupported conclusions ✓ Understand communication requirements with clients and prospective clients ✓ Learn how to disclose services, fees, costs, risks, and limitations ✓ Understand how to distinguish facts from opinions in investment recommendations ✓ Learn record retention requirements for investment analysis and recommendations ✓ Review CFA-style examples and exam concepts from Standard V Chapters: 0:00 Introduction to Standard V – Investment Analysis, Recommendations & Actions 0:20 Definition of a Financial Analyst and Standard V Overview 1:23 Diligence, Independence, and Reasonable Basis 2:25 CFA Example: Maintaining a Reasonable Basis for Recommendations 4:28 Due Diligence and Relevant Information 6:36 Using Secondary and Third-Party Research 8:08 Understanding Diligence and Reasonable Effort 9:06 Factors to Consider When Forming an Investment Basis 10:15 Quantitative Models and Research Limitations 12:12 Selecting External Advisors and Subadvisors 12:43 Group Research, Decision-Making, and Dissociation 17:08 Communication with Clients and Prospective Clients 17:43 Disclosure of Services, Fees, and Costs 20:10 Updating Client Disclosures and Material Changes 22:26 Research Reports and Risk Disclosure Requirements 24:26 Communicating Risks and Investment Limitations 29:44 Distinguishing Facts from Opinions 31:00 CFA Example: Updating Investment Processes 32:26 Record Retention Requirements 34:04 Records Ownership, Storage, and Recommended Procedures 35:39 CFA Example: Maintaining Research Documentation 36:38 Final Review of Standard V CFA® Resources: CFA Level I:https://analystprep.com/shop/cfa-leve... CFA Level II:https://analystprep.com/shop/cfa-leve... CFA Level III:https://analystprep.com/shop/cfa-leve... Follow AnalystPrep for more CFA® and finance education content: Facebook:   / analystprep   Instagram:   / analyst_prep   LinkedIn:   / analystprep   #CFA #CFAExam #CFALevelIII #CFAEthics #InvestmentAnalysis #CFAInstitute #CFAStudy #FinancialAnalyst #PortfolioManagement #EthicsAndProfessionalStandards #AnalystPrep