hello all, there are many practice questions about been arrested or been cited by the police for public misdemeanors. Do you have any tips to know when something outside work constitutes a violation of misconduct?



Given there are no replies I’ll take a shot at this.

Standard 1D (Misconduct) seems to be a bit of a catch-all, and is a bit vague overall (I’m guessing intentionally, as the CFAI may want a bit of wiggle room to disicpline someone). That being said it looks like issues that call into question the intergrity, or trustworthiness of a person are the most serious. I would look for two things to determine if an action violated this standard, was the person in a prvledged position in some way that they then took advantage of (stealing from a charity that you had additional access to for example), or did it involve a lie of some sort (for example running a scam, even one not related to the investment industry). Other small law-breaking, like civil disobedience (specifically mentioned in the curriculum) or a traffic violation would most likely not constitute a violation, in my opinion.

I would imagine breaking any really serious law would also lead to some CFA disiplince but somehow I doubt you’ll get a question like “John Smith, a CFA charterholder, murders his wife with an ax. Does this constitute a violation of the CFA Institute Code of Ethics aand Standards?”

thnak you Ron.