Standard II (A) - Key Points | CFA Level 1

C

Standard II (A) relates to the responsibility of AIMR members and candidates to use their professional designation properly and in a non-misleading manner. A person must be registered to take the next scheduled CFA exam to be a "candidate" in the CFA program. There is no designation for someone who has passed

Level I, II, or III of the CFA exam. Candidates may state, however, that they have completed Level I, II, or III. The standard applies to all related explanations or descriptions of the CFA designation, including letterheads and business cards, resumes, directory listings, printed advertising, brochures and oral statements to clients and prospects.

Standard II(A) of the CFA Institute's Code of Ethics and Standards of Professional Conduct pertains to the use of the CFA designation and its requirements. Let's go through each answer choice to determine which one is false:

A. You must be registered for the next CFA exam in order to call yourself a candidate. This statement is true. According to Standard II(A), individuals can refer to themselves as candidates for the CFA exams only if they are registered for the upcoming exam. This requirement ensures that individuals do not misrepresent their status as candidates.

B. This standard relates to business cards and letterheads. This statement is true. Standard II(A) does indeed cover the appropriate usage of the CFA designation on business cards, letterheads, and other professional documents. It sets guidelines for the accurate and ethical representation of one's professional credentials.

C. This standard does not relate to oral statements. This statement is false. Standard II(A) applies not only to written materials like business cards and letterheads but also to oral statements. It emphasizes the importance of accuracy and fairness when making oral representations of one's professional qualifications.

D. There is no designation for someone who has passed Level I, II, or III. This statement is false. The CFA Institute does provide designations for individuals who have successfully completed each level of the CFA Program. Candidates who pass Level I are awarded the "CFA Level I Candidate" designation, Level II passers receive the "CFA Level II Candidate" designation, and Level III passers receive the "CFA Level III Candidate" designation. These designations acknowledge the progress and achievements of individuals at each stage of the CFA Program.

E. All of these answers. This answer choice is incorrect because it claims that all of the statements provided are false, but we have identified that statements A, B, and C are true, while statement D is false.

F. Candidates may state that they have completed Level I, II, or III. This statement is true. Candidates who have successfully completed a level of the CFA Program are allowed to state that they have completed that particular level. However, it is important to note that they should not refer to themselves as CFA charterholders until they have completed all three levels of the program, met the required work experience, and pledged to adhere to the CFA Institute's Code of Ethics and Standards of Professional Conduct.

In conclusion, the answer is D. There is no designation for someone who has passed Level I, II, or III. This statement is false because the CFA Institute does provide specific designations for individuals who have passed each level of the CFA Program.