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CFA Level I · CFA Level I Exam · Application of the Code and Standards: Level I

A CFA Institute member works for an asset manager that wants to tell prospective clients that it follows the Code and Standards. The firm has aligned its own code of ethics with the principles of the Code and Standards. Which statement is the firm most likely required to include whenever it claims compliance?

The firm should state that it claims compliance with the CFA Institute Code of Ethics and Standards of Professional Conduct and that the claim has not been verified by CFA Institute. CFA Institute does not verify such claims, so implying audit or endorsement would be misleading.

  1. AThat compliance has been audited by the CFA Institute Board of Governors
  2. BThat the claim has not been verified by CFA InstituteCorrect
  3. CThat only individual members, not the firm, are bound by the Code and Standards

Explanation

The Handbook says a party that ensures its code of ethics meets the principles of the Code and Standards should state that it claims compliance and that the claim has not been verified by CFA Institute. The other options describe verification that does not occur or misstate the firm's claim.

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