Hi, I have started with Ethics and found this question today during an exam. Basically they ask you which of the statement would not be in violation of the Code and Standards A - X is a member of CFA Institute, has passed her Level I Exam of the CFA program, and plans to take her Level II exam next year. B - X is a CFA Level II Candidate. C - X is a member of CFA Institute and would become a CFA upon completion of all requirements as administered by CFA Institute. Which one would you pick and why? Thanks -N
I’d go with “C” because it states that “X …would become a CFA” which is wrong for a few reasons - #1 CFA isn’t supposed to be used as a noun. #2 I think the exams and work are the requirements, but you still have to apply for the charter (i.e. its not a shoe in).
question asks – WOULD NOT BE in violation. B --> is in violation bcos no one is supposed to say they are a CFA Level II Candidate. C --> Is in violation bcos CFA is used as a noun. A is ok so long as it is a statement of fact - that X passed the Level I examination, and plans to take Level II the next year.
looks like i read that one too quickly. doh!
why can’t you say you are a level 2 candidate if you’re registered to take it next year? not enough info.
cpk123 Wrote: ------------------------------------------------------- > question asks – WOULD NOT BE in violation. > > B --> is in violation bcos no one is supposed to > say they are a CFA Level II Candidate. > > C --> Is in violation bcos CFA is used as a noun. > > > A is ok so long as it is a statement of fact - > that X passed the Level I examination, and plans > to take Level II the next year. “B” does not seem to be a violaltion : I think it is NO violation if I say " I’m CFA Level II Candidate", if I have cleared L-1 and registered for L-II examination and due to appear in the ensuing L-II exam.
Please read the SOP Handbook, VII (B) Guidance CFA candidates must never state or imply a partial designation for passing one or more levels or cite an expected completion date of any level of the CFA Program. Final award of the charter is subject to meeting the CFA Program requirements and approval by the CFA Institute Board. Improper References • “CFA charterholders achieve better performance results.” • “John Smith is among the elite, having passed all three CFA examinations in three consecutive attempts.” • “As a CFA charterholder, I am the most qualified to manage client investments.” • “CFA, Level II”
Add on information Proper References • “Completion of the CFA Program has enhanced my portfolio management skills.” • “John Smith passed all three CFA examinations in three consecutive years.” • “The CFA designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.” • “The credibility that the CFA designation affords and the skills the CFA Program cultivates are key assets for my future career development.” • “As a CFA charterholder I am committed to the highest ethical standards.” • “I enrolled in the CFA Program to obtain the highest set of credentials in the global investment management industry.” • “I passed Level I of the CFA examination.”
but in the one you’re pointing to, it is missing the word, “candidate”. look right under the one you marked “ok”.
So that one - they have finished the Level 3 in 2003 and because of the work requirements - do not have the charter yet. It is a “Complete designation”. Level II Candidate - is a partial designation. And hence a violation.
i am sure on this. but we can agree to disagree. it’s a pretty basic ethics issue that would probably not show up on the test though.
so by your admission this question has two right answers? when they are asking for the one which would NOT be a violation? By your own selection both A and B are not violations…
so i think it’s an error or something. all i’m saying is: if you’re registered to take one of the levels of the cfa exam, you can call yourself a cfa level __ candidate. you can’t call yourself, joe cfa II. if this is a violation, i’ve broken it numerous times. with people from the cfa society as well as people from schweser. so maybe i’m hosed. but i doubt it.
cpk123 Wrote: ------------------------------------------------------- > Add on information > Proper References > > • “I am a 2003 Level III CFA candidate.” > There it is. You can definitely state that you are a LII CFA Candidate, if this is the case. For example, I can, and do state that I am a LIII CFA Candidate for the 2009 exam.
if i had to guess on this question. i’d pick b.
holy sht. mcleod. way to jump in buddy.
The only thing that I could see wrong with B is if you’re supposed to to say “LII CFA Candidate” vs. “CFA Level II Candidate” (like if this implies that you are a candidate to be a “CFA Level II”). I usually state the former, but that seems way to nit picky.
yeah. i think it’s a bad question… if i got that question on a real test, i’d be pissed. especially if i got it wrong because the words were switched around.
I think the answer to the question may be clouded by a couple of missed words in the original question.
Yeah, if this was on the test it would be one of those questions that gets debated on AF for like 3 weeks afterward. In other words, this looks like a typical CFAI ethics exam question.