In term of CFA Code of Ethics

V. INVESTMENT ANALYSIS, RECOMMENDATIONS, AND ACTIONS

A. Diligence and Reasonable Basis. Members and Candidates must:

1. Exercise diligence, independence, and thoroughness in analyzing investments, making investment recommendations, and taking investment actions.

2. Have a reasonable and adequate basis, supported by appro- priate research and investigation, for any investment analysis, recommendation, or action.

B. Communication with Clients and Prospective Clients. Members and Candidates must:

1. Disclose to clients and prospective clients the basic format

and general principles of the investment processes they use to analyze investments, select securities, and construct port- folios and must promptly disclose any changes that might materially affect those processes.

2. Disclose to clients and prospective clients significant limita- tions and risks associated with the investment process.

3. Use reasonable judgment in identifying which factors are important to their investment analyses, recommendations, or actions and include those factors in communications with clients and prospective clients.

4. Distinguish between fact and opinion in the presentation of investment analysis and recommendations.

C. Record Retention.

Members and Candidates must develop and maintain appropriate records to support their investment anal- yses, recommendations, actions, and other investment-related communications with clients and prospective clients.

Why is it important and relationship of three of them?