Responsibilities as a CFA Institute Member or Candidate | CFA Level I Ethics
In this lesson, we’ll explore the responsibilities and conduct expected of you as a CFA Institute member or candidate, along with the proper ways to reference the CFA Institute, the CFA designation, and the CFA Program.
7A. Conduct in CFA Institute Programs
As a member or candidate of the CFA Program, your conduct influences the public’s perception of the CFA Charter. Standard 7A requires you to maintain a high ethical standard to protect the CFA Institute’s reputation and its members.
Examples of unacceptable conduct include:
- Cheating on any CFA Institute exam or violating their rules and policies
- Using an unauthorized calculator during the exam
- Bringing prohibited items into the exam hall
- Disclosing confidential exam information to others
Remember, expressing your opinions about the CFA Institute, the CFA Program, or other programs is allowed, as long as you don’t disclose confidential information.
Application (Using Unauthorized Items in the Exam):
Jamie Smith is taking the Level I CFA examination. She is having trouble remembering a few key points from her study materials, so she sneaks in a small piece of paper with these notes on it. During a break, she checks her notes to refresh her memory. A proctor notices her using the notes and confiscates the paper.
Comment: Smith has violated Standard VII(A) by bringing unauthorized written material into the exam room. Her conduct compromised the integrity and validity of her exam performance, as well as the rules and regulations of the CFA Program, the Candidate Pledge, and the CFA Institute Code and Standards.
Application (Discussing Exam Content on Social Media):
Alex Thompson and a group of fellow CFA Level II candidates create a private group chat to discuss their study progress. After the exam, the group members start discussing specific questions they found challenging, including some details of the questions.
Comment: By sharing and discussing confidential exam information within the group chat, all the candidates involved have violated Standard VII(A). Their actions compromise the integrity of the exam process and violate the Candidate Pledge, as the exam content is considered confidential until publicly released by CFA Institute.
7B. Proper Reference to the CFA Institute, Designation & Candidacy
Standard 7B outlines how to correctly refer to your relationship with the CFA Institute, your candidacy in the CFA Program, and the CFA designation.
Association with CFA Institute
Here’s a quick overview of the proper way to associate yourself with the CFA Institute:
- Refer to yourself as a CFA candidate if you have enrolled for any of the CFA exams or are awaiting results
- Never imply or state that you have a partial designation, like “CFA Level 2” in your resume
- Use the CFA designation correctly after your name once you are a CFA Charterholder
Improper Association & Promotional Promises
Avoid improper association with the CFA Institute and making promotional promises tied to the CFA designation, such as promising superior investment results because of your CFA Charter. Stick to factual statements highlighting the rigor of the CFA Program.
Anticipated Date of Conferment
Never provide an anticipated date of conferment for the CFA Charter. Instead, state that you have passed all three levels of the CFA Program and will be eligible for the CFA Charter upon completion of the required work experience.
Application (Misrepresenting CFA Candidate Status):
Paul Johnson is a Level II candidate in the CFA Program. On his LinkedIn profile, he states that he is a “CFA Level II Charterholder.” He believes that this distinction will help him stand out from other job applicants in the investment management field.
Comment: Johnson has violated Standard VII(B) by misrepresenting his status as a “CFA Level II Charterholder.” He is not yet a CFA charterholder, but a Level II candidate in the CFA Program. He should correct his LinkedIn profile to accurately reflect his candidate status, for example, by stating “CFA Level II Candidate.”
Application (Claiming Unearned CFA Charter):
Emily Thompson passed all three levels of the CFA Program and has completed the required work experience. However, she has not yet submitted her work experience details to CFA Institute for review and approval. In the meantime, she updates her resume to include “CFA” after her name, assuming that her work experience will be accepted without any issues.
Comment: Thompson has violated Standard VII(B) by claiming the CFA designation before her work experience has been reviewed and approved by CFA Institute. She should only use the CFA designation once she has received confirmation that her work experience has been approved and she has been officially granted the CFA charter.
Congratulations on completing all seven standards of professional conduct by the CFA Institute! To ensure success, practice as many questions as possible and review case studies. See you in the next topic, where we’ll learn about the Global Investment Performance Standards!
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