CFA Level I · CFA Level I Exam · Ethics and Trust in the Investment Profession
Which of the following sanctions for violations of the Code and Standards is most accurately described in the Preamble as a possible disciplinary outcome from CFA Institute?
Revocation of the right to use the CFA designation is a sanction named in the Preamble. Others are revocation of membership and of candidacy. CFA Institute cannot impose imprisonment or force an employer to dismiss a member.
- ARevocation of the right to use the CFA designationCorrect
- BA mandatory prison term for the member
- CAutomatic removal from the member's employer
Explanation
The Preamble says violations may result in disciplinary sanctions by CFA Institute, including revocation of membership, revocation of candidacy in the CFA Program, and revocation of the right to use the CFA designation. CFA Institute does not impose prison terms or dismiss people from their employers.
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