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

A member's firm states in marketing material that it claims compliance with the CFA Institute Code of Ethics and Standards of Professional Conduct, and adds that CFA Institute has verified the claim. This statement is most likely:

The statement is inappropriate. A firm claiming compliance should say that the claim has not been verified by CFA Institute. Saying CFA Institute verified it misrepresents the facts, even if the firm's code meets the principles.

  1. Aacceptable, because the firm's code meets the principles of the Code and Standards.
  2. Bacceptable, provided the firm obtains verification each year.
  3. Cinappropriate, because the claim should state that it has not been verified by CFA Institute.Correct

Explanation

A party whose code 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. Asserting verification misstates the position. Annual verification is not a mechanism described in the Handbook.

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