B. Specific Key Principles

1. Reasonable Basis and Fair Representation
Principle: Investment analysts shall have a reasonable basis for, and provide fair
representation in, their investment research, recommendations, and investment
management.

Key recommendations:
a. Investment analysts shall have a reasonable basis for their investment
research, recommendations, and investment management, supported by
thorough and diligent research and analysis.
b. Facts and opinions shall be clearly distinguished; forecasts shall be labelled
as such.
c. Analysis shall be presented clearly and structured logically so as to avoid
any misinterpretation.
d. Analysis shall be prepared with professional diligence; investment analysts
shall make every reasonable effort to check the reliability and truthfulness
of information from external sources.
e. The basic principles and methods used for valuation, securities’ selection,
and portfolio construction, and any material changes to them, shall be disclosed;
all material facts and risk factors shall be adequately disclosed.
f. Investment analysts shall not give assurances or guarantees, either orally or
written, regarding the performance of an investment.
g. When using material prepared by another, investment analysts shall take
prudent and thorough care acknowledging the name of the author, publisher,
or source of such material.
h. Investment analysts shall maintain appropriate records to support the reasonableness
of their investment research, recommendations, and investment
management.

2. Suitability
Principle: Investment analysts shall assess the appropriateness of an investment
recommendation or investment action for their clients and prospective
clients.

Key recommendations:
a. Investment analysts shall make a reasonable inquiry into clients’ and
prospective clients’ financial situations, and know their needs and investment
experiences.
b. Investment analysts shall consider the appropriateness of investment
recommendations or actions for clients’ investment objectives and portfolios.
c. Investment analysts shall clearly indicate the basic features of an investment
and its associated risks to clients and prospective clients.
d. When an investment recommendation is made to the public (not specified
clients), investment analysts shall indicate information such as provided
under B.2.c. above so that the recipients of the recommendation can determine
whether the recommendation is appropriate for them or not.

3. Prohibition Against Misrepresentation
Principle: Investment analysts shall accurately present all relevant facts to
avoid any misrepresentation as to their professional services.

Key recommendations:
a. Investment analysts shall not make any statements that could be misleading
as to the services offered to clients and prospective clients, and any other
important facts relevant to professional activities.
b. Investment analysts shall present investment performance fairly, accurately,
and completely to their clients and prospective clients.

4. Prevention and Disclosure of Conflicts of Interest
Principle: Investment analysts shall take all necessary steps to avoid conflicts
of interest that could reasonably be expected to impair their independence and
objectivity.

Key recommendations:
a. Investment analysts shall disclose to their clients, prospective clients, and
employers all matters that could reasonably be expected to impair their independence
and objectivity.
b. Investment analysts shall inform their supervisors of any form of pressure
arising in the course of their professional duties.
c. Investment analysts shall refrain from ownership of securities in their coverage
sectors, unless such ownership is reasonably judged not to impair
research objectivity and is disclosed to clients and prospective clients.
d. Investment analysts assigning recommendations shall allow their clients and
prospective clients adequate time to act on their recommendations before
acting on their own behalf or their employers.
e. Investment analysts shall not trade inconsistently with their firm’s published
recommendations, except in cases of clear personal necessity and only in
compliance with the employer’s disclosure procedures.
f. Investment analysts shall give priority to investment transactions for clients
over their personal or employers’ account transactions.

5. Compensation
Principle: Investment analysts shall not accept compensation that could reasonably
be expected to impair their independence and objectivity.

Key recommendations:
a. Investment analysts shall disclose to their clients, prospective clients, and
employers all monetary compensation or other benefits for services provided
to clients from any source other than their firms.
b. Investment analysts shall not accept from companies that they cover, gifts or
other benefits which could reasonably be expected to impair their independence
and objectivity.

6. Fair Dealing with Clients
Principle: Investment analysts shall deal fairly with all clients and prospective
clients when disseminating investment recommendations and taking investment
actions.

7. Prohibition Against Use of Material, Non-Public Information
Principle: : Investment analysts, whilst in the possession of material non-public
information relating to issuers of financial instruments, shall not trade on, or
communicate to others, such information, or use such information in investment
analysis.

8. Proper Use of Professional Qualifications
Principle: Investment analysts shall use their qualifications with due care so
as to enhance the standing of and confidence in such qualifications and their
related associations.

Key recommendations:
When using the CIIA designation in their professional activities, investment analysts
shall take due care so as to enhance the standing of and confidence in the
qualification and its related associations.

9. Preservation of Client Confidentiality
Principle: Investment analysts shall preserve the confidentiality of information
about clients and prospective clients.