Skip to content

CFA Level I · CFA Level I Exam · Guidance for Standard VII: Responsibilities as a CFA Institute Member or CFA Candidate

Maria Soto, a CFA charterholder, tells prospective clients about the designation. Which statement is most likely to comply with Standard VII(B)?

The opinion statement about the CFA Program being the best preparation complies, because relative-merit claims are acceptable when presented as the speaker's opinion. Promising outperformance or guaranteed superior returns because of the designation implies superior performance and violates Standard VII(B).

  1. A"Because I hold the CFA designation, my portfolios will outperform those of non-charterholders."
  2. B"In my opinion, the CFA Program is the best preparation for investment professionals."Correct
  3. C"Charterholders are guaranteed to deliver better risk-adjusted returns."

Explanation

Claims about the relative merits of the CFA Program are allowed when stated as opinion. Asserting or implying superior performance or guaranteed results from holding the designation is prohibited.

Did you get it right without looking?

One question tells you little. A timed set on Guidance for Standard VII: Responsibilities as a CFA Institute Member or CFA Candidate shows your real accuracy, how long you take and where you lose marks.

Practise Guidance for Standard VII: Responsibilities as a CFA Institute Member or CFA CandidateFree diagnostic mock

More Guidance for Standard VII: Responsibilities as a CFA Institute Member or CFA Candidate questions