Failure to disclose personal fraud


I’m working on the June Mock Exam. When a CFA member interviews for a position, he purposely did not disclose a fraud he committed in college years ago. Would that CFA member violate the CFA Standards? Did he violate misrepresentation, conflict of interest, or misconduct? I’ve seen this type of problems a few times on practice questions but is still unclear.


wouldn’t say conflict of interest

misrepresentation - if you misrepresent yourself IE your college degree from a city school but stated as a state school this would be representation

if he had done it by accident i think misrepresentation though because he didn’t disclose and it happened previously

but since he purposely knew he had to report and didn’t i would say it would be safe to assume it was misconduct

idk interested to hear other people

Conflict of Interest: No

Misrepresentation: No (Becoz he didn’t vocally or orally state something, he knew it to be false)

Misconduct: Yes…fraud

Loyalty to Employer: Yes…he put reputation of his employer at risk

This is what I think but I could be wrong

He is not employed yet, misconduct is more appropriate :

Misconduct : Members and Candidates must not engage in any professional conduct involving dishonesty , fraud, or deceit or commit any act that reflects adversely on their professional reputation, integrity , or competence.

S### happens when you don’t read questions properly esp ethics ones. thnx

Good points. I agree with almost everything you wrote here. Except, I am not very clear about misrepresentation. Does it require “intent”. Meaning if a team built a model and you presented the model and forgot to mention a person on the team, who created an integral part of the model. Due to this inadvertent omission, did this person violate misrepresentation?

Members and candidates must NOT KNOWLINGLY make any misrepresentations. Inadvertant mistakes doesn’t violate misrepresentation in my opinion. However, he has to take reasonnable measure once he is aware of the same

I have seen questions where i have gotten wrong because the canidate unknownling handed out marketing material prepared by anther group for years

when the error was found the guy reported it but it still violated misrepresentation