CFA Level 1 Question of the Week – Ethical and Professional Standards

Question

Alan
Brown is a retired investment manager who earned his CFA charter fifteen years ago. He recently retired and has since not paid his annual CFA dues or signed the professional conduct statement. In a discussion with his son, Brown states “My fifteen years as a CFA
Institute member have equipped me with strong
investment management skills and have enabled me to adopt a more
analytical and reasoned approach when
addressing client needs.”

Is Brown’s statement
in violation of the CFA Institute’s Standards of Professional Conduct?

 	A. No.
 	B. Yes, he has overstated his competency as a CFA Institute member.
 	C. Yes, his right to refer to himself as a CFA Institute member has been
suspended until he resumes paying his dues and signs the professional
conduct statement.

Matt_AnalystPrep · Answer

The correct answer
is A.

Brown is not in
violation of the Code and Standards; this is because his claims of the merits of being a CFA Institute member
are facts. The program enhances portfolio
management skills and enables managers to handle client affairs in a more informed manner. Brown has ceased to be
a member of the CFA Institute, and he
cannot identify himself as such since he
has not paid his annual dues or signed the professional
conduct statement. However, he is not in violation by merely referring
to the years in which he was an active member.