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
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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
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      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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