Lesson 7 of 7 · All lessons in this module
- Standard V: Investment Analysis, Recommendations, and ActionsVideo lesson
- Standard V(A) cases: reasonable basis and outside research
- Standard V(A) cases: models, advisers and providers
- Standard V(B) cases: services, costs and process changes
- Standard V(B) cases: risks, limitations, facts and opinions
- Standard V(C) cases: records and retention
- Standard V cases: what the 2027 text adds
This lesson is part of the 2027 curriculum. You are following the 2026 curriculum, where it is not taught in this form. Switch if you are sitting the exam under the 2027 curriculum.
Lesson 7 of 7 · 12 min
Standard V cases: what the 2027 text adds
The 2027 guidance keeps the Standard V rules but states several duties as musts and adds a few: notify clients when risk characteristics change, follow up on changed recommendations, disclose methodology changes and know your retention rules.
In short
- Risk characteristics: clients must be notified when significant changes occur in the risk characteristics of a security or asset strategy, not only when the stated process changes.
- Follow-up: significant changes in a published report or recommendation require follow-up communication.
- Methodology: quantitative advice needs readily available reference material and any change in methodology must be disclosed (2026: changes should be highlighted).
- Doubtful sources: research that may be biased, unreliable or otherwise deficient must not be relied on; suspicion is enough.
- Records and advisers: know your employer's retention policies and the regulatory rules, and tell clients about the use of external advisers.
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