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CFA Level I · CFA Level I Exam · Code of Ethics and Standards of Professional Conduct

A firm states publicly that it follows the Code and Standards after confirming its own code of ethics meets the principles. Which statement must the firm most likely include whenever it claims compliance?

The firm must state that its claim of compliance has not been verified by CFA Institute. CFA Institute encourages firms to adopt the Code and Standards but does not verify compliance claims, so the required statement says so.

  1. AThe claim has been verified by CFA Institute
  2. BThe claim has not been verified by CFA InstituteCorrect
  3. CThe firm is an approved CFA Institute member

Explanation

The handbook requires the statement that the party claims compliance with the Code and Standards and that this claim has not been verified by CFA Institute. CFA Institute does not verify such claims, so option A is wrong. The Code applies to individuals, so firms are not members, making C wrong.

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