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

A firm states that it adheres to the CFA Institute Code and Standards after ensuring its own code of ethics meets their principles. Which course of action is most appropriate for the firm when it publicly claims compliance?

The firm should include the statement that the claim has not been verified by CFA Institute. The Handbook asks any party claiming compliance to say it claims compliance with the Code and Standards and that CFA Institute has not verified the claim.

  1. AObtain CFA Institute verification before making any claim
  2. BInclude the statement that the claim has not been verified by CFA InstituteCorrect
  3. CApply the Code and Standards only to employees who hold the charter

Explanation

The Handbook says a party claiming compliance should state that it claims compliance with the Code and Standards and that the claim has not been verified by CFA Institute. Verification is not required before the claim, and the firm cannot limit it to charterholders if it claims compliance.

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