Reading 2-VII: Standards of Professional Conduct & Guidan 2011, following, likely, center, least

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Session 1: Ethical and Professional Standards
Reading 2-VII: Standards of Professional Conduct & Guidance: Responsibilities as a CFA Institute Member or CFA Candidate

LOS B.: Reference to CFA Institute, the CFA Designation, and the CFA Program.

 

 

Which of the following is least likely an appropriate use of the CFA designation?

A) Jeremy Salyers, as a CFA charterholder, expects to outperform the market because CFA charterholders have on average outperformed their peers.

B) Jeremy Salyers, CFA.

C) Jeremy Salyers has earned the CFA designation by passing three exams, all three on his first attempts.

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Members may not over-promise their performance as CFA charterholders. They may follow their name with the designation and describe, factually, the requirements for becoming a charterholder.

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Jason Jones, a stock broker who has completed Level 1 of the CFA program and is registered for the next Level 2 CFA exam, may:

A) state that he is a Level 2 candidate in the CFA Program.

B) use the Level 1 CFA designation since he has passed the Level 1 exam.

C) not mention that he is involved in the CFA Program until he has passed all three levels.

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Jason may refer to his participation in the program but must state that he is a candidate and specify the level of the exam for which he is registered. There is no partial designation.

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Ralph Lim and Susan Bland have both passed Level I of the CFA Program. Both are currently enrolled to sit for Level II. Lim's business card reads, "Ralph Lim, CFA Level I." Bland's resume states, "Level II Candidate in the CFA Program." According to CFA Institute Standards of Professional Conduct involving use of the professional designation:

A) Lim violated the Standard, but Bland did not.

B) Both Lim and Bland violated the Standard.

C) Bland violated the Standard, but Lim did not.

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There is no designation for someone who has passed Level I, Level II, or Level III of the CFA examination. Candidates may state, however, that they have completed Level I, II, or III, as the case may be, in the CFA Program. Thus, Lim violated the Standard, but Bland did not.

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When using the CFA designation, which of the following is appropriate?

A) Jones CFA's, Inc.

B) "I am a CFA."

C) "I am a CFA charterholder."

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The only appropriate use of the designation is “I am a CFA charterholder.” You cannot use the designation as a noun (as in “I am a CFA”) and you cannot use the designation in the company name.

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Which of the following is an appropriate statement for a Level II CFA candidate to make?

A) I passed the Level I CFA exam last year.

B) I am a Level II CFA.

C) I am a Level I CFA charterholder.

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The only appropriate statement is “I passed the Level I CFA exam last year.” It is a factual statement and does not imply a partial designation, which does not exist.

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Janet Olson, CFA, is an analyst at Quantech Associates. Olson attended a conference at which Brian Wright presented several proprietary computerized spreadsheets that he had developed to value high-tech stocks. While at the conference, Olson copied the spreadsheets without Wright’s knowledge. Later, Olson made several minor changes to Wright’s initial model. After testing the revised model, Olson was impressed with the results. As inputs for the model, she used factual materials supplied by Moody’s Investors Service, a recognized financial and statistical reporting service. Olson wrote a research report describing the revised model and its results and distributed the report to Quantech’s clients. According to CFA Institute Standards of Professional Conduct, which of the following actions is Olson required to take? Olson is:

A) required to seek authorization from Wright to copy the spreadsheets and acknowledge Wright for developing the initial model and Moody's Investors Service as the source of the data.

B) required to acknowledge Moody's Investors Service as the source of the data but is not required to seek authorization from Wright to copy the spreadsheets or to acknowledge Wright for developing the initial model.

C) required to seek the authorization from Wright to copy the spreadsheets, acknowledge Wright for developing the initial model but is not required to acknowledge Moody's Investors Service as the source of the data.

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To comply with Standard I(C) Misrepresentation, Olson should have gotten the authorization from Wright to copy the spreadsheets. The prohibition against plagiarism requires that Olson identify Wright as the source of the initial model. However, the Standard permits publishing factual information from Moody's Investors Service without acknowledgment because Moody's is recognized as a source of factual materials.

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Anderson, Baker and Chang all received their CFA charters and ordered new business cards.  Their business cards are as follows:

G. J. Anderson, CFA

B. K. Baker, Chartered Financial Analyst

M. S. Chang, C.F.A

Which of the business cards use the CFA marks improperly?

A) Anderson and Chang.

B) Baker and Chang.

C) Chang.

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Consistent with Standard VII(B), members must use the CFA marks in a proper manner. Members may indicate “CFA” or “Chartered Financial Analyst” after their names, but the designation should not be given more prominence than that used in printing the name itself. Also, periods should not be used to separate the letters.

[此贴子已经被作者于2011-2-27 13:37:33编辑过]

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All of the following situations violate Standard VII(B), Reference to CFA Institute, the CFA Designation, and the CFA Program, EXCEPT:

A) Karen Wright received her CFA charter in 1980. In 2001, she stopped paying her annual CFA Institute dues. During her retirement speech in 2002, Wright said, "Although I am no longer an active CFA charterholder, I was awarded the right to use the CFA designation in 1980 and maintained active membership in CFA Institute for 20 years."

B) Barney Latrell, when introducing himself to a prospective client, says, "I completed my CFA in 1995, which required passing three six-hour examinations over a three year period."

C) John Cabell has satisfied all the requirements imposed by CFA Institute for the right to use the Chartered Financial Analyst designation. His business cards say: John Cabell, C.F.A.

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Wright’s statement did not violate Standard VII(B). Her right to use the CFA designation was suspended when she stopped paying dues but her statement is a matter of fact. Cabell’s violated Standard VII(B) because he improperly used the CFA designation on his business card. Proper usage of the CFA designation on his business card would be: John Cabell, CFA or John Cabell, Chartered Financial Analyst. Latrell violated Standard VII(B) by using the CFA designation as a noun. The CFA mark must be used as an adjective. Latrell could have stated, “I was awarded the CFA charter in 1995.”

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An analyst has not paid his CFA Institute dues for several years but has filed a professional conduct statement annually. Which of the following statements is CORRECT regarding his status with CFA Institute? The analyst:

A) cannot refer to ever having been a member.

B) is still an active member.

C) is no longer an active member.

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Standard VII(B), Reference to CFA Institute, the CFA Designation, and the CFA Program, applies. In order to use the CFA designation, the member must pay annual dues and submit a yearly Professional Conduct Statement.

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Judy Albert and Bob Tye, who recently started their own investment advisory business, plan to take the Level III CFA examination next year. Albert's business card reads, "Judy Albert, CFA Candidate." Tye has not put anything about the CFA on his business card. However, the firm's promotional materials describe the CFA requirements and indicate that Tye participates in the CFA program and has completed Levels I and II. According to CFA Institute Standards of Professional Conduct:

A) Albert has violated the Standards but Tye has not.

B) Both Albert and Tye have violated the Standards.

C) Neither Albert nor Tye has violated the Standards.

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On letterheads and business cards and in directory listings, only the mark CFA or the words Chartered Financial Analyst should appear after the charterholder's name.