CFA Level 1: Standard IV (B.6) - Prohibition against Misrepresentation | Guaranteed Investments

Guaranteed Investments

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Question

Under Standard IV (B.6), Prohibition against Misrepresentation, a member may discuss a "guaranteed" investment, as long as that investment is which of the following?

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A. B. C. D. E. F.

F

Standard IV (B.6) prohibits statements that an investment is "guaranteed", or that superior returns can be expected in the future based on the member repeating past success. It does not preclude truthful statements on investments with guaranteed returns, such as some insurance contracts, short-term Treasury securities and insured bank deposits.

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