CFA Level I Exam · Guidance for Standard VII: Responsibilities as a CFA Institute Member or CFA Candidate

Standard VII(B): Reference to CFA Institute, Designation and Program

Updated 7 October 2026 · Fact-checked

Standard VII(B) says members and candidates must not misrepresent or exaggerate the meaning or implications of CFA Institute membership, the CFA designation or candidacy in the CFA Program. You may state facts accurately. You may not claim superior performance, guaranteed results or a designation you have not earned.

Understand Standard VII(B): Reference to CFA Institute, Designation and Program

Standard VII(B) protects the value of the CFA brand. The words CFA, CFA Institute and CFA Program carry weight with clients and employers. If members or candidates stretch what those words mean, the trust behind them weakens.

The official wording is: Members and Candidates must not misrepresent or exaggerate the meaning or implications of membership in CFA Institute, holding the CFA designation, or candidacy in the CFA Program.

The rule is about accuracy. It does not ban you from mentioning your credentials. You can say you are a CFA charterholder, a CFA Institute member or a candidate in the CFA Program. You must not suggest these facts mean more than they do. Earning the charter shows you passed the exams, met the work experience requirement and agreed to follow the Code and Standards. It does not show you will outperform others or deliver guaranteed returns.

The rule also separates three groups. A charterholder has earned the designation. A candidate is someone who is registered for a CFA exam, or who has passed an exam and is awaiting the next one, and who remains actively enrolled in the program. A person is a candidate only while those conditions hold. A person stops being a candidate on failing an exam and not registering for the next one, on ceasing to be actively enrolled, or on being awarded the charter. A candidate has not yet earned the charter. A candidate may say they are a candidate in the CFA Program. A candidate is not a charterholder, and the CFA Program is not a designation.

The Standards give guidance on how to refer to the designation. Use the designation only as an adjective (for example, CFA charterholder). Never use it as a noun, such as saying a person is a CFA. Do not use it as a partial designation, such as CFA Level I or CFA Level II. A candidate may say they are a candidate in the CFA Program, and may state factually which levels they have passed. A claim of passing all levels consecutively or on the first attempt must not imply superior ability. A candidate must also not suggest that participating in the CFA Program or passing levels guarantees future success or superior performance.

Key formulas to remember

Official text of Standard VII(B): Members and Candidates must not misrepresent or exaggerate the meaning or implications of membership in CFA Institute, holding the CFA designation, or candidacy in the CFA Program.; Quote this idea when testing an answer choice: is the statement accurate, or does it exaggerate?
Charterholder vs candidate: Charterholder = earned the designation. Candidate = registered for a CFA exam, or passed an exam and awaiting the next, and remains actively enrolled in the program; not yet a charterholder. A person stops being a candidate on failing an exam and not registering for the next one, on ceasing to be enrolled, or on being awarded the charter.; A candidate must never present themselves as holding the designation or a partial designation.
Permitted statements: Factual statements about membership, the designation or candidacy are allowed.; Example: stating you passed the Level I exam is fine if it is true and not presented as a title or as proof of superior skill. A claim of passing all levels consecutively or on the first attempt must not imply superior ability. Do not suggest that participating in the program or passing levels guarantees future success or superior performance.
Prohibited statements: Promises of superior performance, guaranteed results, or implied designations are violations.; Words like guaranteed, best, superior or proven because of the CFA charter are red flags.
Not a designation: No designation is earned by passing a single level.; Do not write CFA Level I, CFA (Level II) or similar after your name as if it were a title. Stating a level passed is allowed only as a plain fact, and must not imply superior ability.

How to solve Standard VII(B): Reference to CFA Institute, Designation and Program questions

Use this method on any question about how a member or candidate refers to CFA Institute, the designation or the program.

1Identify who is speaking: a charterholder, a member who is not a charterholder, or a candidate.
2Find the exact claim made about the designation, membership or program. Quote it in your head.
3Ask if the claim is a fact that is true and stated plainly. If yes, it is likely allowed.
4Check if the claim implies superior performance, guaranteed results, a higher skill level or a title the person has not earned. If yes, it is a violation.
5Check the format: a candidate must not use the CFA letters after their name or imply a partial designation. Candidacy may be stated only factually.
6Credential questions often test VII(B), though I(C) can also apply to misrepresentation. Decide which fits the facts best.
7Choose the option that stays factual, or the option that corrects the exaggeration.

Quickest way: Fact or exaggeration test

When to use it: Use when you have about 90 seconds and the stem describes marketing wording, a business card or a client pitch.

Underline the claim about the CFA charter, membership or program.
Ask: is it a bare fact, or does it promise or imply more?
Check the speaker: a candidate who uses the CFA letters after their name or implies a partial designation is wrong. Candidacy may be stated only factually.
Eliminate any option that approves exaggeration or guaranteed results.
Pick the option that states the facts accurately, or that removes the misleading claim.

Common mistakes in Standard VII(B): Reference to CFA Institute, Designation and Program

Thinking a candidate may use the letters CFA after their name once they pass a level.
Students see Level I or Level II as partial ownership of the title.
Fix: Remember there is no partial designation. A candidate may state candidacy and the exam levels passed as facts, but never as a title.
Treating any mention of the CFA charter in marketing as a violation.
Students overread the rule as a ban on promotion.
Fix: Accurate statements are allowed. The violation is exaggeration or misrepresentation of what the charter means.
Believing a charterholder may say the CFA charter guarantees better investment results.
The designation sounds prestigious, so claiming superior skill feels natural.
Fix: The Standard forbids implying superior performance or guaranteed results because of the designation.
Mixing up VII(B) with VII(A).
Both sit under Standard VII and mention the program.
Fix: VII(A) is about conduct that harms the integrity of CFA exams and the program. VII(B) is about how you describe your credentials.
Using the designation as a noun, such as saying someone is a CFA.
It is common shorthand in everyday speech.
Fix: Use the designation only as an adjective, as in CFA charterholder. Also remember that a person should refer to candidacy only while actively enrolled in the program.

Worked examples

Example 1

A candidate who has passed the Level I exam puts on her business card: Maria Lopez, CFA Level I. Is this a violation of Standard VII(B)? A. No, because she passed an exam. B. Yes, because it implies a partial designation. C. No, because Level I is a public result.

Show the solution

She is a candidate, not a charterholder.
Passing the Level I exam is a fact. She may state it in words, for example that she is a candidate in the CFA Program and has passed the Level I exam.
Writing CFA Level I after her name presents that fact as a title.
The Standard forbids implying a designation or partial designation, so the format is the problem, not the fact.
Option A is wrong because passing an exam does not allow it to be used as a title. Option C is wrong because a result being public does not make a title format acceptable. Only B is correct.

Answer: B

Example 2

A charterholder writes in a brochure: As a CFA charterholder, I deliver superior returns that other managers cannot match. Which statement is most accurate? A. The statement is permitted because the person holds the designation. B. The statement violates Standard VII(B) because it exaggerates the meaning of the designation. C. The statement is permitted if the returns are audited.

Show the solution

The person does hold the designation, so the fact of holding it is true.
The claim links the designation to superior performance.
Standard VII(B) forbids exaggerating the meaning or implications of holding the designation.
Audited returns may help other standards but do not make the link between the charter and outperformance accurate.
Only option B matches the Standard.

Answer: B

Exam tips

Look for wording that links the CFA charter to results, such as guaranteed, superior or better than others. These are almost always violations.
Check whether the speaker is a candidate or a charterholder before reading the options.
Accurate, plain statements of facts are usually the correct choice. Do not pick the option that bans all mention of the designation.
Remember there is no partial designation. Phrases like CFA Level II as a title are a trap.
All three options are standalone, so eliminate the one that approves exaggeration first, then compare the remaining two.

Practice questions from Guidance for Standard VII: Responsibilities as a CFA Institute Member or CFA Candidate

Standard VII(B): Reference to CFA Institute, Designation and Program in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Standard VII(B): Reference to CFA Institute, Designation and Program: frequently asked questions

What does Standard VII(B) say in simple words?

It says you must not misrepresent or exaggerate what CFA Institute membership, the CFA designation or CFA Program candidacy means. You can state facts accurately. You cannot imply superior performance or a title you have not earned.

Can a CFA candidate say they are a CFA?

No. A candidate has not earned the designation, and the designation is used only as an adjective, never as a noun. A candidate may say they are a candidate in the CFA Program and may state exam levels passed as facts, but must not present themselves as holding the charter or a partial designation.

Can a charterholder mention the CFA charter in marketing?

Yes, if the statement is accurate and does not exaggerate. The charter shows the person met the requirements. It does not guarantee investment results or prove superior skill.

How is Standard VII(B) different from Standard I(C)?

Standard I(C) covers misrepresentation in general. Standard VII(B) applies the idea specifically to how you refer to CFA Institute, the designation and the program. A question about credentials often tests VII(B), though I(C) can also apply.