FINRA Series 86 Research Analyst Practice Exam 2025 – Your All-in-One Guide to Comprehensive Exam Success!

Regulation AC (Analyst Certification) plays a vital role in ensuring the integrity and transparency of research reports provided by analysts. The primary requirement of Regulation AC is that analysts must certify the accuracy and completeness of their research reports and the analyses contained within them. This means that when an analyst issues a research report, they are affirming that their views reflect their true opinions, and they must acknowledge whether or not they have any conflicts of interest that could influence their analysis.

This regulation was instituted to bolster the credibility of research and to protect investors by ensuring that the opinions offered in analyst reports are both truthful and backed by thorough analysis. This certification requirement brings a level of accountability to analysts, as it compels them to evaluate and disclose the quality of their work genuinely.

While the other options mention important aspects of financial regulation, they do not pertain specifically to the role of Regulation AC in the context of research reports. Regulation AC does not dictate financial statement formats, create trading restrictions, or specifically mandate disclosures of insider trading, making the requirement for analysts to certify the accuracy of their research the correct focus in this context.