CFA Practice Question
Grover McGuire has just passed the Level II CFA exam. He is excited and helps his boss write an announcement to the firm's clients who deal with Grover. The memo states that Grover is a Level II CFA and that such an honor is bestowed upon the brightest and smartest professionals in the financial services field. He is now a Level III candidate as a result of passing the difficult exam.
A. No standard has been violated since Grover has not claimed charterholder status.
B. Since Grover is not a candidate, the Code and Standards do not apply to him. Besides, since Grover's boss is writing the memo, Grover can deny any responsibility for the memo.
C. Standard VII, which requires that the CFA designation be used appropriately, has been violated.
Explanation: Standard VII has been violated since there is no such thing as a partial CFA designation (i.e., Level II CFA). Furthermore, "CFA" should not be used as a noun. Claiming to possess superior skills as a result of passing the exam is also a violation. Unless Grover is registered as a candidate for the Level III exam and has been accepted by the CFA Institute, he cannot claim candidacy.
User Contributed Comments 2
| User | Comment |
|---|---|
| orchid | -no partial CFA designation -should not be use as a noun -posses superior skills as result of passing exam -cannot claim candidacy unless registered |
| Mikehuynh | Good job orchid |