An analyst has not paid her CFA Institute dues for several years but has filed a professional conduct statement annually. Which of the following statements is TRUE regarding her status with CFA Institute? The analyst’s membership is: A) suspended and she is not considered a CFA charterholder. B) considered “inactive.” C) temporarily suspended until she pays her dues. D) active, but she cannot use the CFA designation until her dues are paid in full.
B Reason: Failure to pay dues, will result in the person’s membership not being “active.” It does not result in suspension.
A - def
I think the word suspension is strong, but I still think it’s A. Technically if you don’t abide by your responsibilities as a CFA Institute Member, which includes paying dues, you are not a CFA Charterholder.
Correct, the answer is A. What’s wrong with C though?
C doesn’t say she’s not cosidered a CFA charterholder. She is both suspended AND not considered a charterholder. Ruff world, huh?
I don’t think they work on temporary suspension, even though that’s what it really is. I am pretty sure once you start paying your dues again, you are “reinstated”. These are confusing, the wording in Ethics trips me up all the time.
I’ve got a problem with this question. A) suspended and she is not considered a CFA charterholder. and C) temporarily suspended until she pays her dues. Assuming that she has the ability to become a CFA charterholder again, A and C are the same thing. Can someone confirm/reject the following statement? “Andrew has not paid his dues and is currently suspended. After paying his dues, Andrew will be a CFA charterholder.”
They are technically the same thing. However, one thing I have noticed is that CFAI rarely uses ambiguous terms like that. You are either in violation or you are not. You are either suspended or you are a charterholder. There is no middle ground on any of the ethics stuff. If there is, I have completely missed it.
budfox, GG would be proud of your answer. “Buddy’s learning!”
Is GG supposed to mean the erstwhile famous “Gordon Gecko”??? Reference to him keeps popping up in many of the Ethics discussions very often. CP
yeah, it was a nickname someone gave me when I was an intern years ago and it kind of stuck.
I think the difference between A and C is simply that with A, the CFA designation cannot be used i.e. after ones name. According to C, this person is “temporarily” suspended meaning that he/she can still use the CFA designation. “Temporarily” assumes only a certain period of time. It does not mean “permanently” which A seems to imply.
GG is Gordon Gecko indeed.
can u ever be considered “inactive”?
I’ve just searched the pdf Ethics file from CFAI - there isn’t a single “inactive” word
libra_june Wrote: ------------------------------------------------------- > I’ve just searched the pdf Ethics file from CFAI - > there isn’t a single “inactive” word “Once accepted as a CFA Institute member, the member must satisfy the following requirements to maintain his or her status: • remit annually to CFA Institute a completed Professional Conduct Statement, which renews the commitment to abide by the requirements of the • pay applicable CFA Institute membership dues on an annual basis. If a CFA Institute member fails to meet any one of the requirements listed above, then the individual is no longer considered an “active” member. Until their membership is reactivated, individuals must not hold themselves out as active members. They may state, for example, that they were CFA Institute members in the past or reference the years when their membership was active.” (pg 135-136) Based on this, why would the answer not be B?