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Ethics Topic Tests on CFA Portal

Has anyone else found the Ethics questions extremely challenging? It is starting to feel like every single answer I put is wrong.


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Yeah, they’re pretty hard. :(

Yes very difficult


Yes!!! I got 60% overall, pretty low considering ethics is make or break, but it was on a first try and first reading. But the questions were tricky, yes

Very tricky, I remember the one where the statement about confidentiality was wrong because it only stated 2 types of clients like current and prospective clients, but it also required former clients. Really easy to forget such things that are not obvious from the case facts.

I was doing fairly well on those ethics questions, averaging 5/6 until I came across one case where I got everything wrong…I’m still trying to rebuild my ethics self-confidence…

Speaking of which, see this statements and question:

Statement 1:
Jacaranda looks for investments offering intrinsic value through a top-down approach, including a review of forecasts of economic and industry performance. We evaluate historical and projected company financials, perform extensive financial ratio analysis, conduct management interviews, and determine target prices using a variety of valuation models.

Statement 2:
Jacaranda may, at times, hire outside advisers to manage real estate holdings on behalf of clients. These advisers have the necessary expertise to manage property assets.

Statement 3:

Jacaranda has four CFA charterholders among its senior management. Their participation in the CFA Program has enhanced their investment management skills. All of these managers passed the three exams in the shortest time possible.

Q. Which marketing statement should Bukenya most likely revise to conform to the CFA Institute Standards of Professional Conduct?

  1. Statement 1
  2. Statement 2
  3. Statement 3

I would say 2 and 3 seem correct, but 3 is a blatant wrong because you can not state earning the CFA charter enhances your investment management skills?

But the answer given is:

B is correct. Standard V(B)–Communication with Clients and Prospective Clients requires the firm to inform the clients about the specialization or diversification expertise provided by external adviser(s) when outside advisers are used to manage various portions of the clients’ assets under management. This information allows clients to understand the strategies being applied that affect their investment objectives. Stating “These advisers have the necessary expertise to manage property assets” is not likely to provide enough information for the clients to understand the investment methodologies or strategies implemented by the outside advisers.

A is incorrect because the statement gives clients and prospective clients a description of the investment process as required by Standard V(B)–Communication with Clients and Prospective Clients.

C is incorrect because Standard VII(B)–Reference to CFA Institute, the CFA Designation, and the CFA Program allows a statement to the effect that a member “passed all three CFA Examinations in three consecutive years”.

Does anyone understand this?


As always with Ethics there is a fine line between right and wrong - there is nothing wrong with saying the CFA designation has enhanced your skills - it most likely has!

What is wrong is saying that it results in superior knowledge to the next person. That is a blatant violation. You should never assume that the CFA will make you a better person the next man, but you can assume that it will improve you skills.


Ah I see the difference. I interpreted this statement as a different blend of: ’CFA lead me to be able to make superior investment decisions’.

Pff, this sure is a very thin line in my opinion…