Standard III(C) – Suitability
Application 1: Stating Facts About the CFA® Designation and CFA® Program
Dorothy Chen, CFA, is in conversation with one of her mentees – Hannah Blake. Blake is considering sitting the CFA Level I exam and is asking Chen for her advice. Chen states that going through the CFA® Program enhanced her knowledge of the investment industry and profession. Additionally, she praises the rigor and high ethical standards emphasized by the CFA Program. Chen informs Blake that she passed all three exams in three consecutive years.
Chen’s LinkedIn profile states that she is an active member of the CFA Institute. However, she is yet to pay her current annual membership dues.
Which of Chen’s statements would most likely be considered a violation of Standard VII(B) – Reference to CFA Institute, CFA Designation, and the CFA® Program?
- The CFA® Program enhanced her knowledge of investment, industry, and profession.
- Informing Blake that she passed all three exams in three consecutive years.
- Her LinkedIn profile states that she is an active member of the CFA Institute.
Solution
The correct answer is C.
Chen has violated Standard VII(B) – Reference to CFA Institute, CFA® Designation, and the CFA®Program by implying that she is a CFA Institute member in her LinkedIn profile without paying her annual membership dues. Her statement regarding passing all three exams in three consecutive years is a fact and is therefore not a violation of Standard VII(B).
Application 2: Improper Reference to The CFA® Program and Designation
Which of the following is an improper reference to the CFA® Program and/or designation?
- “Enrolling in the CFA® program has made me a better equity valuation analyst than my peers.”
- “I am February 2021 CFA Level I candidate.”
- “I have passed all three levels of the CFA® Program and may be eligible for the charter subject to the completion of the required work experience.”
Solution
The correct answer is A.
Answers B and C make correct reference to the CFA® Program and Designation. Implying that passing all three levels of theCFA® Program makes an individual a better analyst is a violation of Standard VII(B) – Reference to CFA Institute, CFA® Designation, and the CFA®Program. Claiming superior ability by obtaining the designation or passing the examinations is strictly prohibited under Standard VII(B).
Application 1: Stating Facts About the CFA® Designation and CFA® Program
Dorothy Chen, CFA, is in conversation with one of her mentees – Hannah Blake. Blake is considering sitting the CFA Level I exam and is asking Chen for her advice. Chen states that going through the CFA® Program enhanced her knowledge of the investment industry and profession. Additionally, she praises the rigor and high ethical standards emphasized by the CFA Program. Chen informs Blake that she passed all three exams in three consecutive years.
Chen’s LinkedIn profile states that she is an active member of the CFA Institute. However, she is yet to pay her current annual membership dues.
Which of Chen’s statements would most likely be considered a violation of Standard VII(B) – Reference to CFA Institute, CFA Designation, and the CFA® Program?
- The CFA® Program enhanced her knowledge of investment, industry, and profession.
- Informing Blake that she passed all three exams in three consecutive years.
- Her LinkedIn profile states that she is an active member of the CFA Institute.
Solution
The correct answer is C.
Chen has violated Standard VII(B) – Reference to CFA Institute, CFA® Designation, and the CFA®Program by implying that she is a CFA Institute member in her LinkedIn profile without paying her annual membership dues. Her statement regarding passing all three exams in three consecutive years is a fact and is therefore not a violation of Standard VII(B).
Application 2: Improper Reference to The CFA® Program and Designation
Which of the following is an improper reference to the CFA® Program and/or designation?
- “Enrolling in the CFA® program has made me a better equity valuation analyst than my peers.”
- “I am February 2021 CFA Level I candidate.”
- “I have passed all three levels of the CFA® Program and may be eligible for the charter subject to the completion of the required work experience.”
Solution
The correct answer is A.
Answers B and C make correct reference to the CFA® Program and Designation. Implying that passing all three levels of theCFA® Program makes an individual a better analyst is a violation of Standard VII(B) – Reference to CFA Institute, CFA® Designation, and the CFA®Program. Claiming superior ability by obtaining the designation or passing the examinations is strictly prohibited under Standard VII(B).
Sergio Torrico
2021-07-23
Excelente para el FRM 2
Escribo esta revisión en español para los hispanohablantes, soy de Bolivia, y utilicé
AnalystPrep para dudas y consultas sobre mi preparación para el FRM nivel 2 (lo tomé una sola vez y aprobé muy bien), siempre tuve un soporte claro, directo y rápido, el material sale rápido cuando hay cambios en el temario de GARP, y los ejercicios y exámenes son muy útiles para practicar.
diana
2021-07-17
So helpful. I have been using the videos to prepare for the CFA Level II exam. The videos signpost the reading contents, explain the concepts and provide additional context for specific concepts.
The fun light-hearted analogies are also a welcome break to some very dry content.
I usually watch the videos before going into more in-depth reading and they are a good way to avoid being overwhelmed by the sheer volume of content when you look at the readings.
Kriti Dhawan
2021-07-16
A great curriculum provider. James sir explains the concept so well that rather than memorising it, you tend to intuitively understand and absorb them.
Thank you ! Grateful I saw this at the right time for my CFA prep.
nikhil kumar
2021-06-28
Very well explained and gives a great insight about topics in a very short time. Glad to have found Professor Forjan's lectures.
Marwan
2021-06-22
Great support throughout the course by the team, did not feel neglected
Benjamin anonymous
2021-05-10
I loved using AnalystPrep for FRM.
QBank is huge, videos are great.
Would recommend to a friend
Daniel Glyn
2021-03-24
I have finished my FRM1 thanks to AnalystPrep. And now using AnalystPrep for my FRM2 preparation. Professor Forjan is brilliant. He gives such good explanations and analogies. And more than anything makes learning fun. A big thank you to Analystprep and Professor Forjan. 5 stars all the way!
michael walshe
2021-03-18
Professor James' videos are excellent for understanding the underlying theories behind financial engineering / financial analysis. The AnalystPrep videos were better than any of the others that I searched through on YouTube for providing a clear explanation of some concepts, such as Portfolio theory, CAPM, and Arbitrage Pricing theory. Watching these cleared up many of the unclarities I had in my head. Highly recommended.