Question #38
Reading: Reading 42.3 Standards of Professional Conduct Guidance for Standards III
PDF File: Reading 42.3 Standards of Professional Conduct Guidance for Standards III.pdf
Page: 16
Status: Incorrect
Correct Answer: A
Your Answer: C
Part of Context Group: Q38-39
First in Group
Shared Context
Question
Which of the following is least accurate regarding the promotional announcement of Patel passing the Level III exam?
Answer Choices:
A. The promotional announcement violates the restrictions on misrepresenting the meaning of the CFA designation
B. The promotional announcement assumes that passing of the Level III examination of the CFA program allows one to use the CFA designation
C. The announcement violates the Code of Ethics because it implies that obtaining a CFA charter leads to superior performance
Explanation
An announcement that a member of a firm has received the right to use the CFA®
designation is not a violation of the Code or Standards. However, Standard VII(B) requires
that any reference to the charter must not misrepresent or exaggerate the meaning or
implications of the CFA designation. A charterholder cannot claim that holding a charter
leads to superior performance results. The letters "CFA" can only be used as an adjective
(never a noun, as in "he is a CFA"). Finally, passing all three exams does not give one the
right to use the designation. All criteria must be met (e.g., experience requirements)
before Patel can use the designation.
(Module 42.5, LOS 42: III(C))