Which CFA Standard requires members to develop and maintain appropriate records to support their investment analyses, recommendations, actions, and other investment-related communications?

• A. Misrepresentation.
• B. Record Retention.
• C. Diligence and Reasonable Basis.
• D. Loyalty, Prudence, and Care.

Answer: (B)

The main idea here is that there is a CFA Standard that requires keeping evidence of your investment work. Records of analyses, the rationale behind recommendations, actions taken, and other investment-related communications must be created and kept in a way that lets someone trace how decisions were made. This creates an audit trail, supports accountability, and helps satisfy regulatory and firm requirements. It also ensures you can substantiate what you said or recommended if questions arise.

The other standards refer to different obligations. Misrepresentation targets false statements or misleading communications. Diligence and Reasonable Basis focuses on ensuring there is a sound, justifiable basis for analyses and recommendations. Loyalty, Prudence, and Care concerns acting in the client’s best interests with prudent judgment. None of these alone establishes the requirement to maintain records, so the record-keeping standard is the best answer.