Independence & Objectivity

CFA Level I Ethics
#1

Question for Schweser Mock which I’m paraphrasing below -

CFA Level 1 candidate Mr X gets hired by BigCorp to write a research report on their company and gets paid a set fee. X issues a Buy recommendation. X posts the report for purchase on a website that he creates and does not state either on the website or on the report that HMI paid for researcch.

Answer says he violated both independence and objectivity.

I understand independence bit as CFAI clearly states you must disclose compensatin arrangements

But how is it violation of objectivity principle? His fee is not in anyway tied to the conclusion/analysis of his report. I do not see how this could be a conflict of interest!

#2

IMO, Him getting paid to do this report could be perceived as compromising independence and objectivity. He should have disclosed that he recived a flat fee for his work that way readers could determine for themselves what they think. From what I have seen, disclosing compensation is almost always 100% the right thing to do.