CFA Practice Question

CFA Practice Question

Steve Johnson and Jeff Caruso, who recently started their own investment advisory business, have recently passed Level II of the CFA examination. Subsequently, they registered to take the Level III CFA examination. Steve Johnson's business card reads, Steve Johnson, CFA Candidate. Jeff Caruso did not put any designation on his business card, but he made some promotional material for the business that describes the CFA requirements and indicates that Jeff Caruso participates in the CFA Program and has completed Levels I and II. According to the Standards: (Adapted from Standards Handbook)
A. Steve Johnson has violated the Standards but Jeff Caruso has not.
B. Both Steve Johnson and Jeff Caruso have violated the Standards.
C. Neither Steve Johnson nor Jeff Caruso has violated the Standards.
Explanation: As per the standards, candidates may not use the CFA designation in any form prior to actually obtaining their charter. Therefore, Steve Johnson has violated Standard VII (B). However, candidates may mention that they are participating in the CFA Program, and also the levels that they have completed. Therefore, Jeff Caruso has not violated Standard VII (B).

User Contributed Comments 6

User Comment
xqcc Steve should use "Level 3 candidate in the CFA program".
lwang014 I think the point is, he (Steve) should not quote the designation on his card.
stefdunk Standard VII (B): Candidates in the CFA Program, as defined in the CFA Institute Bylaws may reference their participation in the CFA Program, but the reference must clearly state that an individual is a candidate in the CFA Program and cannot imply that the candidate has achieved any type of partial designation.
stefdunk stating that you are a CFA Candidate is OK, whereas Jeff states that he completed levels I and II, inferring that he has a partial designation - therefore the first answer should be correct!
armanaziz Agree with stefdunk
dimanyc the problem with Steve Johnson is the fact that he incorrectly used CFA as a designation. If he mentioned instead "I am registered to take Level III CFA exam in 20XX", that would not be a violation. Stating "CFA candidate" is considered claiming designation and is therefore incorrect.
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