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CFA Level I · CFA Level I Exam · Ethics and Trust in the Investment Profession

A regional investment firm wants to state publicly that it complies with the CFA Institute Code of Ethics and Standards of Professional Conduct. Which statement is most appropriate for the firm to make 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 this claim has not been verified by CFA Institute. Saying it is certified or audited would misrepresent the position.

  1. AIt is a CFA Institute member firm certified for compliance.
  2. BIt claims compliance, and the claim has not been verified by CFA Institute.Correct
  3. CCFA Institute has audited and verified its compliance annually.

Explanation

The Handbook preface states that once a party ensures its code of ethics meets the principles, it should say that it claims compliance and that the claim has not been verified by CFA Institute. The other options imply certification or verification that does not exist.

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