- CFA Exams
- CFA Level I Exam
- Study Session 1. Ethical and Professional Standards
- Reading 3. Guidance for Standards I-VII
- Subject 22. Standard VII (B) Reference to CFA Institute, the CFA Designation, and the CFA Program
CFA Practice Question
John Snider earned the right to use the CFA designation in September 1988. He recently retired from the investment management profession. Since he is retired, John no longer attends CFA Institute society meetings and has stopped paying his CFA Institute dues. According to the Standards, how should John refer to his affiliation with the CFA Program?
A. John Snider, CFA
B. John Snider, CFA (retired)
C. "I was awarded the CFA charter in 1988."
Explanation: If a charterholder fails to pay dues for any year, the right to use the CFA designation is suspended. However, stating that he was awarded the CFA charter in 1988 is a fact.
User Contributed Comments 5
| User | Comment |
|---|---|
| TarriqP | I disagree. The statement "I was awarded the CFA charter in 1988" implies that he is still a charterholder... |
| MatsevychO | I agree with TarriqP. don't understand why C is correct |
| charliedba | he said he 'was'. It did not imply anything about what he is now. |
| Benn09 | So from a normal person to person conversation, if someone told you, "I was awarded the CFA charter in 1988", you would take that to mean they still were one. But grammatically he is just stating a fact, and although it might be a little misleading, it isn't incorrect. |
| gyee2012 | The best case would be C.... Choice A would violate Standard VII for misrepresenting the membership and be misleading... Choice B states (retired)... however, you still have to pay dues at a lower value if you want to retain that retired status Worst case out of the selection would be C... Although it does state he earned the CFA title in 1988, its not misrepresenting but it can be misleading depending on the delivery |