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CFA Level I · CFA Level I Exam · Guidance for Standard III: Duties to Clients

McCoy joins a new firm and wants to feature, in the firm's advertising, the equity returns he earned over six years at his former employer. Which action is most appropriate under Standard III(D)?

The most appropriate action is to show the record with full disclosure of where the performance was earned and the manager's specific role. Standard III(D) permits prior-firm track records when properly identified, but prohibits presenting them as the new firm's own performance.

  1. AOmit the record, because prior-firm results can never be shown
  2. BPresent the record as the new firm's own performance history
  3. CShow the record with disclosure of where it was earned and his specific roleCorrect

Explanation

Standard III(D) does not generally prohibit showing performance from a prior firm, provided the presentation discloses where the performance took place and the person's specific role. Presenting it as the new firm's own record would be a misrepresentation. A complete ban is not what the standard requires.

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