Schlumberger, the independent research analyst, uses data from public sources but does not quote sources in his reports. Which Standard has he least likely violated?

• A. Misrepresentation
• B. Record Retention
• C. Performance Presentation
• D. Confidentiality of client information.

Answer: (C)

Attribution and how data sources are handled in research reports affect the way results are presented. The standard about Performance Presentation focuses on presenting investment performance fairly and accurately, including the methods and calculations used, time periods, benchmarks, and ensuring the numbers aren’t misleading. If the data come from public sources and are reported accurately, simply not quoting every source does not inherently render the performance presentation incorrect. The numbers themselves aren’t being distorted; the issue would arise only if readers are misled into thinking the data were proprietary or prepared by the analyst.

Not citing sources could raise concerns under Misrepresentation, because omitting the source might mislead readers about the data’s origin or support for the conclusions. It could also clash with Record Retention, since failing to document sources can make it hard to substantiate the basis of the research if questions arise. Confidentiality of client information isn’t implicated by the act of not quoting public data sources.

So, presenting performance data derived from public sources, without misrepresenting the data or the methods, is least likely to violate the standards governing how performance is presented.