Chau is enrolled to sit for the Level III CFA Program exam. In its marketing brochure, PIA states: “May Chau is a Level III candidate in the CFA Program.” A colleague tells Chau this statement may be incorrect according to the CFA Institute Code and Standards and suggests the following change: “May Chau has passed Level II of the CFA Program exam.”
Q. Does the reference to Chau’s participation in the CFA Program, as presented in the marketing brochure, or in the suggested change, violate the CFA Institute Standards?
- No.
- The marketing brochure is a violation, but the suggested change is not a violation.
- The suggested change is a violation, but the marketing brochure is not a violation.
A is correct. Both the first and second presentations are consistent with the CFA Institute Code and Standards. According to the Standards, candidates may reference their participation in the CFA Program as long as they are active, but they cannot imply a partial designation. A statement about the level of the exam successfully passed or a level of the exam upcoming is appropriate, whereas indicating or implying a partial designation or citing a future date of expected completion of a level in the CFA Program is prohibited.
Sir,
If he just mentions that ”Chau has passed CFA L2 exam”, he wont be a covered person, where as if its mentioned that he is CFA L3 candidate, he will become a covered person. So how can both be same, but as per CFA institute there is no violation and both are same ?
Please throw some light.
Thanks,
Praveen
So, what do you mean by covered person? Both the statements i.e. CFA Level 3 candidate or passed Level 2 of the CFA Program essentially mean the same and do not violate any standards.
Thanks for the reply!
My understanding is that:
Covered person is the one who is a member (who pays annual fees to CFA institute and signs PCS every year) or a candidate (one who has enrolled for the exam) and are suppose to follow CFA code and standards
So if we just mentions that he has passed CFA L2 exam, he is neither member nor candidate as he has not enrolled for the exam. hence he is not a covered person, ie he is not obligated to follow CFA codes and standards.
Where as if he is CFA L3 candidate, he becomes a covered person and has to follow CFA codes and standards.
So I think both are different.
Please advise.
Thanks!
So, here the question is not if he is covered person or not. Question is simply asking both statements made on CFA designation reference follow standards or not.