Members and Candidates must develop and maintain appropriate records to support their investment analysis, recommendations, actions and other investment-related communications with clients and prospective clients.

Reasoning behind Standard V-C
This Standard was created starting with the 9th edition, taking effect in 2006. Previously, recordkeeping was mentioned in the discussion on Reasonable Basis (Standard V-A), but it has now developed to the point where a separate Standard is being written in order to reinforce its importance. In developing appropriate relationships with clients, keeping records is an exercise in "covering your tail" by substantiating, via a formal and defined recordkeeping process, why all investment decisions were made and are being made.

Key Points to Remember about Standard V-C

  • Recordkeeping procedures are the responsibility of the firm, with the individual required to assist in retaining research notes or other documents. Specific responsibilities will vary based on the role of that individual in the investment decision-making process.
  • Records may be maintained either in hard copy or in electronic form.
  • CFA Institute recommends retaining records for seven (7) years, in the absence of any local guidance or regulation.
  • Records created as part of the Member or Candidate's professional activity are the property of the Firm, NOT the individual. Thus it is an ethical violation for a member to take such property with him/her to a new affiliation, without the express written consent of the firm.
Look Out!

The concept that records are the "property of the firm, not the individual" might be tested in the case of a quantitative model. In other words, can the developer take these records (how the model was developed) to a new affiliation? Keep in mind – it's the firm's model, not the individual's model. The developer would need to completely re-create his or her work at the new affiliation to avoid a violation.



Standard VI-A: Disclosure Of Conflicts

Related Articles
  1. Personal Finance

    How You Can Become A Venture Capital Associate

    Venture capital analysts are the junior members of the venture capital firm. They receive compensation that is typically higher than other finance analyst positions.
  2. Managing Wealth

    A Look into the Exciting World of Venture Capital

    We look into the world of venture capital, where deep-pocketed investors gamble on funding the next big startup (or the next big flop).
  3. Investing

    What's the Next Big Thing for Venture Capital? (GOOG, FB)

    Flush with a huge inflow of funds, venture capital firms are cautious about what startups to back. What new technologies are drawing the most VC funding?
  4. Financial Advisor

    How to Make the Fiduciary Standard Work for You

    This is how you can tell if your financial planner genuinely has your best interests at heart.
  5. Investing

    Tech Startups: Is a New Bubble Ready to Burst?

    Various indicators suggest that a new tech bubble may burst as valuations of some startups have crashed and Airbnb faces headwinds
  6. Investing

    Be Your Own Venture Capitalist With These Stocks

    By doing some digging, there are ways for the average joe to become his/her own venture capital fund.
  7. Financial Advisor

    Are You A Good Client?

    Investing is a team sport in which the client and financial professional must work together.
  8. Investing

    Understand Your Role In The Investing Process

    Knowing what to expect when managing your assets will help you achieve your financial goals.
  9. Financial Advisor

    Asset Manager Ethics: Investment Process and Actions

    Managers, in developing their investment process, need to determine some “general rules” that make it meaningful. We offer six.
  10. Financial Advisor

    Asset Manager Ethics: Acting Professionally and Ethically

    To aid managers in understanding the requirements for ethical and professional behavior, we offer some basic guidelines.
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center