Reasonable basis

[matteobona88]

Let’s suppose I receive info from the manager of the company about investment prospects and earnings projections that have not already been disclosed to the public. I use this info in my research.
In this case, besides Material non public information violation, am I also in violation of diligence and reasonable basis? Do I have to check the soundness of the information even if it comes from the senior management? Schweser says yes but I it’s not convincing to me

 

[MrSmart]

Don’t believe everything you hear. Do your own objective analysis.
What would the report look like? “We project a 2016-20e EPS CAGR of 20% based on the CFO’s targets for the company” ?

 

[matteobona88]

Ok thanks!