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

An asset management firm adds the sentence "We comply with the CFA Institute Code of Ethics and Standards of Professional Conduct" to its brochure after reviewing its own code of ethics. Which statement is most accurate regarding the firm's claim?

The firm should include the statement that the claim has not been verified by CFA Institute. Firms are encouraged to adopt the Code and Standards, and once their code meets the principles they may claim compliance using that wording; no prior approval is needed.

  1. AThe firm should state that the claim has not been verified by CFA Institute.Correct
  2. BThe firm may not claim compliance because the Code and Standards apply only to individual members and candidates.
  3. CThe firm must obtain written CFA Institute approval before making any such claim.

Explanation

Firms are encouraged to adopt the Code and Standards. A party that ensures its code meets the principles should make the statement that the claim has not been verified by CFA Institute. Approval is not required, and firms are not barred from claiming compliance.

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