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

Greenfield Advisors, an investment firm, adopts the CFA Institute Code and Standards as its own code of ethics and wishes to publicly claim compliance. The statement that the firm should most likely make whenever claiming compliance is that:

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. Asserting verification would be inaccurate, and firms are encouraged, not exempted, to adopt the Code.

  1. Aits claim of compliance has been verified and certified by CFA Institute
  2. Bit claims compliance with the Code and Standards and that this claim has not been verified by CFA InstituteCorrect
  3. Cit is exempt from the Standards because the Code applies only to individuals

Explanation

The Handbook says a party that ensures its code of ethics meets the principles should state that it claims compliance with the CFA Institute Code of Ethics and Standards of Professional Conduct and that the claim has not been verified by CFA Institute. Claiming verification would be misleading. Firms are encouraged to adopt the Code, so exemption is not the proper statement.

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