CFA Practice Question

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CFA Practice Question

A CFA charterholder is the fund manager for a non-profit organization. During a presentation regarding the restructuring of their investment portfolio's asset allocation, the head of the finance committee questions the manager. As part of his response, the manager states, "I am a CFA charterholder. I know what I'm talking about; you should do what I say." According to the Standards of Practice Handbook, has the charterholder violated any of the CFA Institute Standards of Professional Conduct?

A. No
B. Yes: Responsibilities as a CFA Institute Member
C. Yes: Communication with Clients and Prospective Clients
Correct Answer: B

Individuals may reference their CFA designation, CFA Institute membership or candidacy in the CFA Program but must not exaggerate the meaning or implications of membership in the Institute, holding the CFA designation, or candidacy in the CFA Program. Implying that since he is a CFA charterholder his recommendations are correct exaggerates the implications of holding the CFA designation.

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