Why members and candidates must develop and maintain appropriate records?

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.

Records created in professional activities are the property of the firm. When leaving, cannot take those records, including originals or copies of supporting records of his work, to the new employer without the express consent of the previous employer. （records是公司財產(chǎn)，未經(jīng)允許不能帶走）

Cannot use historical recommendations or research reports created at the previous firm because the supporting documentation is unavailable. （不能使用以前的推薦或者研究報告，因?yàn)闆]有支持?jǐn)?shù)據(jù)）For future use, must re-create the supporting records at the new firm through public sources, or directly from covered company, and not from memory or sources through previous employer unless with permission.

Case：

①Guillermo Sandoval, CFA, owns an asset management firm with offices downtown, To minimize rent expenses, each year Sandoval ships the previous year’s research records to a nearby warehouse. There, the reports are digitized and stored in both electronic and hard‐copy forms. After five years, all paper copies are destroyed and only electronic copies are retained.  Are Sandoval’s record retention procedures in compliance with the CFA Institute Standards of Practice?

A. Yes.（right）

B. No, because he did not retain the copies in his offices.

C. No, because he failed to retain the original documents.

②Pavlov, CFA, is a fund manager working for the general partner of a new private equity fund. Pavlov includes in the fund marketing material his performance history from his previous employer. He received permission from his former employer to take his historical return figures and the supporting research reports he used to make the related investment decisions. Did Pavlov most likely violate the CFA Institute Code of Ethics and Standards of Professional Conduct?

A. No.

B. Yes, regarding Loyalty.

C. Yes, regarding Record Retention.(right)