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CFA Level I · CFA Level I Exam · Guidance for Standard I: Professionalism

The guidance defines "knowingly" in Standard I(C) such that a member or candidate is responsible for a misrepresentation when he or she:

A member is responsible when he or she knew or should have known that a misrepresentation was being made, or that omitted information could alter the investment decision-making process. Intent to harm clients or receipt of a complaint is not required.

  1. Aintended to cause a client financial loss.
  2. Bknew or should have known of the misrepresentation or of omitted information that could alter decisions.Correct
  3. Creceived a client complaint about the statement.

Explanation

The guidance says knowingly means the member either knows or should have known that a misrepresentation was being made or that omitted information could alter the investment decision-making process. Intent to harm and complaints are not required.

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