CFA Level II Exam · Guidance for Standard I: Professionalism

Standard I(C): Misrepresentation in CFA Level II Ethics

Updated 7 October 2026 · Fact-checked

Standard I(C) says members and candidates must not knowingly make misrepresentations about investment analysis, recommendations, actions or other professional activities. This covers false statements, misleading omissions, plagiarism, and false claims about qualifications or performance. To solve questions, find what was stated or left out, check if it is accurate and attributed, then name the breach.

Understand Standard I(C): Misrepresentation

Standard I(C) protects the people who rely on what you tell them. A misrepresentation is any untrue statement, or any omission of a fact that makes a statement misleading, about your analysis, recommendations, actions, services, qualifications or track record. The test is whether a client or prospect could be misled by what you said or left out.

The standard has a knowledge element. It prohibits knowingly making misrepresentations. Keep two issues separate. Plagiarism, which is using others' work without credit, is itself an I(C) violation. Failing to verify third-party research, or having no reasonable basis for a statement, is a Standard V(A) issue (Diligence and Reasonable Basis), not I(C). In a vignette, look at what the member actually knew, whether they credited the material they passed on, and whether they verified it.

Plagiarism is the most tested part. You must not copy or use the ideas, words, data, charts or analysis of others and present them as your own. You must give credit to the source. This applies to research reports, models, written material, and also to quotes from other analysts. Others' ideas, analysis, opinions and research must be credited. Factual information from recognised statistical reporting services, and widely known facts, may be used without attribution.

There is one more exception. A member may use, without attribution, work produced by their own firm and by colleagues within the firm. This does not extend to other firms' work. The firm's work must also not be misrepresented to clients or other outside parties as coming from someone else.

The standard also covers how you describe yourself and your firm. You must not overstate your qualifications, experience, credentials, the firm's services, or past performance. Guaranteeing returns, implying you hold a designation you do not, or claiming a track record that belongs to another person or team are all violations.

Note how this differs from Standard I(D), Misconduct. I(C) is about false or misleading communication in professional activities. I(D) is about conduct involving dishonesty, fraud or deceit, or conduct that reflects poorly on integrity or competence. One act can breach both, but name the one that fits the facts best. If the core problem is a false or misattributed statement, choose I(C).

Key formulas to remember

Core prohibition: Misrepresentation = false statement or misleading omission, made knowingly, about analysis, recommendations, actions, services, qualifications or performance; Check each part: what was said, what was left out, and what the person knew. I(C) applies to knowingly false or misleading statements and to plagiarism. Failure to verify or lack of reasonable basis points to V(A).
Plagiarism rule: Use of another's work without credit = violation; Applies to words, ideas, data, charts, models and quotes. Credit the source, even when you paraphrase.
Permitted use of third-party work: Third-party research may be used if you attribute it, and if you verify or have reasonable basis (see Standard V(A)); Relying on a reputable source can be acceptable, but you must not present the work as your own.
Recommended practice: Keep records of sources, verify before use, state limits of analysis, use clear performance and credential statements; These are the compliance steps the Handbook points to for avoiding breaches.
Attribution not required: Widely known facts and data from recognised statistical reporting services need no attribution. Work produced by your own firm and colleagues within it may be used without attribution.; Others' ideas, analysis, opinions and research from outside the firm must still be credited. Do not misrepresent the firm's work to clients or other outside parties as coming from someone else.

How to solve Standard I(C): Misrepresentation questions

Use this sequence for any I(C) item in a vignette. Work from the facts, not from your feelings about the person.

1Read the question first, then scan the vignette for what the member said, wrote, or sent to clients or the public.
2Identify the exact statement or omission: a claim, a number, a credential, a report, or a missing source.
3Ask whether it is false or misleading. Check if something material was left out that changes the meaning.
4Check the source: is the work the member's own, or taken from someone else without credit?
5Decide on knowledge: did the member knowingly make the statement, or fail to check or credit material in a way that left it misleading? Note that lack of diligence alone points to V(A).
6Match to the standard. Use I(C) for misleading communication and plagiarism. Consider I(D) only if the act involves dishonesty, fraud or deceit beyond the communication itself.
7Choose the answer that names the correct Standard and the corrective action: correct the statement, add attribution, or stop using the claim.

Quickest way: Three-check scan: Statement, Source, Status

When to use it: Use it when time is short and the answer options differ mainly on whether a violation occurred.

Statement: is anything said to clients or the public false, exaggerated or incomplete?
Source: is someone else's work used without credit?
Status: are qualifications, performance or services described beyond what is true?
If any check fails, pick the violation of I(C). If the facts show only a lack of checking or no reasonable basis, with no knowing misstatement or plagiarism, the issue points to V(A) instead.
If all three pass, look for the option that says no violation, usually where credit was given and claims were accurate.

Common mistakes in Standard I(C): Misrepresentation

Thinking attribution is only needed for direct quotes.
Students link plagiarism with copying text word for word.
Fix: Remember that ideas, data, charts and models also need credit. Paraphrasing without a source is still a breach.
Assuming a mistake made in good faith is never a problem.
The word 'knowingly' in the standard is read as a full excuse.
Fix: I(C) prohibits knowingly making misrepresentations, so a good-faith error is not an I(C) breach by itself. But using another's work without credit is plagiarism, which is an I(C) violation. Failing to verify third-party research, or lacking a reasonable basis, is a V(A) issue, so consider that Standard instead.
Choosing I(D) Misconduct for every dishonest act.
Both standards sound alike and both involve integrity.
Fix: Use I(C) when the problem is a false or misleading statement, omission or plagiarism. Use I(D) for broader dishonest or deceitful conduct.
Treating reliance on third-party research as always acceptable.
Students remember that the standard permits using outside research.
Fix: Use is allowed only with attribution, and the member should have a reasonable basis. Presenting it as your own work is a breach.
Ignoring omissions.
Students look only for an outright false sentence.
Fix: Ask what was left out. Leaving out a fact that makes the message misleading, such as the limits of a model, is a misrepresentation.
Missing credential and performance claims hidden in the vignette.
These appear as small details in marketing text or a bio.
Fix: Check titles, designations, and past returns carefully. Guarantees of returns and claims of other people's records are red flags.

Worked examples

Example 1

Vignette: Analyst Rao at a global asset manager prepares a report on a mid-cap airline. He copies two paragraphs of industry outlook and a demand chart from a brokerage report by another firm, without naming the source, and includes them in his report sent to clients. His own valuation model, built by him, appears in the same report. Question: Did Rao violate the Code and Standards, and what should he do?

Show the solution

Identify the act: Rao used text and a chart from another firm's report and presented them as part of his own work.
Check the source: the material belongs to another firm and was not credited.
Check the standard: using others' work without credit is plagiarism, covered by Standard I(C).
Consider his own model: it is his work, so no attribution issue arises for it.
Corrective action: add clear citation to the brokerage report, or remove the copied material and write his own analysis.

Answer: Yes. Rao violated Standard I(C), Misrepresentation, by plagiarizing the outlook text and chart. He should credit the source or remove the material. His own valuation model needs no attribution.

Example 2

Vignette: Portfolio manager Chen joins a new firm. In the firm's brochure for prospects she writes, 'During my five years as lead manager my strategy returned 14% a year.' In fact, for those five years she was a member of a five-person team, and the team's strategy returned 14% a year. She was not the lead. Question: Which Standard is most directly breached, and why?

Show the solution

Identify the claim: a personal track record and a role as lead manager.
Check accuracy: the return belongs to a team, and Chen was not the lead, so both the role and the ownership of the record are overstated.
Check the audience: prospects will rely on this in choosing a manager, so it is material.
Match the standard: a misleading statement about her experience and performance falls under I(C).
Rule out I(D) as the best fit: the core problem is the misleading statement, not broader dishonest conduct. Performance presentation rules in III(D) also apply but the misstatement of role and credit is the I(C) issue.

Answer: Standard I(C), Misrepresentation. Chen overstated her role and claimed the team's record as her own. She should describe her actual role and the team basis of the results.

Exam tips

Look for omitted sources in vignettes. Phrases like 'included the chart in the report' with no mention of credit usually signal plagiarism.
When two standards seem possible, choose I(C) for misleading communication and plagiarism, and I(D) for dishonest or deceitful conduct more broadly.
Read the answer options for the corrective action. The best option usually fixes the statement or adds attribution, not just a warning or silence.
Watch for guarantees, inflated titles and borrowed track records in marketing material. These are common disguised I(C) cases.
Do not penalize a member who clearly cites the source and accurately describes their own work. Some items test that no violation occurred.

Standard I(C): Misrepresentation in other exams

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

Standard I(C): Misrepresentation: frequently asked questions

What does Standard I(C) prohibit?

It prohibits knowingly making false statements or misleading omissions about your analysis, recommendations, actions, services, qualifications or performance. It also covers plagiarism. The aim is that clients and prospects are not misled by what you say or leave out.

What is the difference between misrepresentation and misconduct in the CFA Code?

Misrepresentation under I(C) is about false or misleading communication and plagiarism. Misconduct under I(D) covers professional or personal conduct involving dishonesty, fraud or deceit, or that reflects poorly on your integrity or competence. One act can touch both, so choose the Standard that best matches the core facts.

Can I use third-party research without attribution?

No, not if you present it as your own. You may use third-party research if you give credit and have a reasonable basis for relying on it, as explained under Standard V(A). Only widely known facts and data from recognised statistical reporting services can be used without attribution.

How do I avoid misrepresentation in exam questions?

Use a three-check scan of statement, source and status. Check if anything said is false or incomplete, if anyone else's work is used without credit, and if credentials or performance are overstated. Then pick the answer that names the right Standard and fixes the problem.