Question #8
Reading: Reading 42.7 Standards of Professional Conduct Guidance for Standards VII
PDF File: Reading 42.7 Standards of Professional Conduct Guidance for Standards VII.pdf
Page: 3
Status: Incorrect
Correct Answer: A
Your Answer: C
Question
John Johnson, portfolio manager at Sunshine Investments, has passed all three levels of the CFA® Program and has completed his work experience requirements. He expects to receive his charter in the near future. He includes the following statement in his firm's brochure: "Johnson has passed all three levels of the exam and has completed the required work experience for the CFA Charter. He is eligible for the CFA Charter and expects to receive the charter in the near future. Over the years, he has demonstrated a superior performance and his CFA Charter will be rightfully awarded." Johnson has:
Answer Choices:
A. violated CFA Institute Standards of Professional Conduct because he implied superior performance that would be linked to the CFA Charter
B. not violated CFA Institute Standards of Professional Conduct because he met all disclosure requirements
C. violated CFA Institute Standards of Professional Conduct because he advertised the CFA Charter before actually obtaining it
Explanation
According to Standard VII(B), Reference to CFA Institute, the CFA Designation, and the CFA
Program, Johnson may indicate that he has completed the requirements and is eligible for
the CFA charter along with an accurate explanation of the requirements. However, he may
not imply that the designation would mean superior performance capabilities.
(Module 42.10, LOS 42: VII(B))