Skip to content

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

A consulting firm wishes to state publicly that it complies with the CFA Institute Code and Standards. Which statement is most consistent with the Handbook's guidance on adoption?

The firm may claim compliance, noting that CFA Institute has not verified the claim. The Handbook encourages firms to adopt the Code and Standards, and a firm whose code meets the principles should include that disclosure statement whenever it claims compliance.

  1. AOnly individual CFA Institute members and candidates may claim compliance
  2. BThe firm may claim compliance only after CFA Institute verifies its code of ethics
  3. CThe firm may claim compliance, noting that CFA Institute has not verified the claimCorrect

Explanation

The Handbook encourages firms to adopt the Code and Standards. Once a firm ensures its code of ethics meets the principles, it should state that it claims compliance and that the claim has not been verified by CFA Institute. Verification is not required, and claims are not limited to individuals.

Did you get it right without looking?

One question tells you little. A timed set on Application of the Code and Standards: Level I shows your real accuracy, how long you take and where you lose marks.

Practise Application of the Code and Standards: Level IFree diagnostic mock

More Application of the Code and Standards: Level I questions