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

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

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    • Matt_AnalystPrep
      Participant
        • CFA Charterholder
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        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
        Participant
          • CFA Charterholder
          Up
          2
          ::

          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.

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