Standard VII. Responsibilities as a CFA Institute Member or CFA Candidate Flashcards
CFA Standard VII: Responsibilities as a CFA Institute Member or CFA Candidate:
Standard VII(A) – Conduct as Participants in CFA Institute Programs
- Standard VII(A) – Conduct as Participants in CFA Institute Programs
Requirement:
CFA members and candidates must not engage in any conduct that compromises the reputation, integrity, or security of CFA Institute programs. This includes violations related to CFA exams, improper use of CFA affiliation, and dishonesty regarding CFA Institute policies.
Key Provisions:
- Cheating is prohibited: Giving or receiving assistance during an exam is a violation.
- Adhering to CFA Institute’s exam policies: Violating any CFA Institute exam policies, such as bringing unauthorized materials into the exam room, constitutes a breach.
- Maintaining exam confidentiality: Discussing or sharing CFA exam content (specific questions, topics tested, or answers) before or after the exam is prohibited.
- No circumvention of security measures: Any attempt to bypass CFA Institute’s security or rules regarding exam administration is considered misconduct.
- Misrepresentation to CFA Institute: Lying about exam-related issues, professional conduct, or credential status is a serious violation.
- Improper use of CFA designation for personal gain: Using one’s CFA affiliation to gain an unfair advantage in professional dealings is unethical.
Examples of Violations:
- A CFA candidate posts exam questions online or shares them with future test-takers
- A member claims to have passed an exam before receiving official results.
- A candidate falsifies information on their CFA program application or submits fraudulent deferral requests for an exam.
A CFA Institute volunteer misuses confidential information to benefit their business.
✅ Dos
- Respect all exam rules and security procedures, including ID verification, CBT rules, and proctor instructions.
- Report any suspected violations of testing rules or exam security to CFA Institute.
- Keep all exam-related content confidential, including specific questions or topics tested or not tested.
- Disclose CFA program participation truthfully and avoid exaggeration.
- Use CFA association appropriately (e.g., factual statement of passing, volunteering, or participating in a committee).
❌ Don’ts
- Don’t cheat or assist others during exams (e.g., copying, sharing answers, using unauthorized aids).
- Don’t share exam content online or with others, including specific questions or which topics/formulas appeared.
- Don’t disrupt testing environments or behave aggressively with proctors or staff.
- Don’t forge documents (e.g., fake deferral requests or death certificates).
- Don’t use CFA affiliations to promote services or imply competitive advantage (e.g., “my GIPS committee role gives my clients insider benefits”).
- Don’t misrepresent your participation in CFA programs or violate volunteer confidentiality.
Standard VII(B) – Reference to CFA Institute, the CFA Designation, and the CFA Program
Standard VII(B) – Reference to CFA Institute, the CFA Designation, and the CFA Program
Requirement:
CFA members and candidates must not misrepresent or exaggerate their association with CFA Institute, the CFA designation, or the CFA Program.
Key Provisions:
- Accurate representation of CFA status: Members and candidates must truthfully state whether they are CFA charterholders, active members, or candidates.
- No misleading claims: It is prohibited to claim that holding the CFA designation automatically guaranteessuperior investment performance or expertise.
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Proper use of the CFA designation:○ A person can only use the CFA charter after earning it.
○ CFA candidates must state their status correctly (e.g., “Level II CFA candidate in 2025”).
○ Former charterholders who have let their membership lapse cannot use “CFA” after their name.
Examples of Violations:
* A CFA Level III candidate writes “CFA, Expected 2025” in their LinkedIn profile (incorrect usage).
* A CFA charterholder claims they achieve better investment results because of the CFA designation (implying a guaranteed performance advantage).
* A former CFA member continues using the CFA designation after failing to pay membership dues.
A charterholder uses “CFA” in an anonymous online profile to boost credibility without revealing their identity.
✅ Dos
- ✅ Use the CFA designation accurately, only if membership requirements are met.
- ✅ Refer to yourself as a “CFA charterholder” if you’ve earned the charter and kept your membership active.
- ✅ State candidacy clearly (e.g., “Level III CFA Candidate”) only if you are currently enrolled.
- ✅ Describe the rigor and ethics focus of the CFA Program or CFA Institute as a personal opinion or factual benefit.
- ✅ Explain CFA Program requirements accurately if discussing your credentials.
- ✅ Disclose lapsed status if you are no longer a member (e.g., “CFA charterholder from 2010 to 2022”).
❌ Don’ts
- ❌ Don’t say “CFA, Level II” or imply partial designation (e.g., “CFA, Expected 20XX”).
- ❌ Don’t imply superior investment performance simply because of the CFA charter.
- ❌ Don’t use “CFA” after your name if your membership is inactive or lapsed.
- ❌ Don’t claim charterholder status under a pseudonym or on anonymous platforms.
- ❌ Don’t make marketing claims like “As a CFA charterholder, I guarantee better returns.”
- ❌ Don’t reference passing exams as proof of superiority, such as “John Smith is elite—he passed all exams on the first attempt.”
Yu brings handwritten notes into his CFA computer-based testing (CBT) center and claims he forgot they were in his pocket.
A) VII(A)
B) VII(B)
A
Glass uses “CFA” next to a pseudonym (a fictitious name) on an online investment blog.
A) VII(A)
B) VII(B)
B
Gagne posts about the Level II exam questions on a Reddit thread the day after sitting for the exam.
A
Zonder states in marketing materials that passing all three CFA exams on the first try makes him more qualified than peers.
A) VII(A)
B) VII(B)
B
Ramirez uses his volunteer CFA committee role to promote firms that are his clients.
A) VII(A)
B) VII(B)
A
Sharma frequently glances at the screens of candidates at adjacent testing workstations during his Level I exam.
A) VII(A)
B) VII(B)
A
Simpson retires but continues using “CFA” without clarifying his “retired” designation.
A) VII(A)
B) VII(B)
B
Whitcomb, who passed the exam, publicly discusses the specific scoring and weighting of topics on LinkedIn.
A) VII(A)
B) VII(B)
A
Warrenski uses his CFA committee involvement to attract prospective clients by implying influence.
A) VII(A)
B) VII(B)
A
Chiu submits a forged doctor’s note to get a deferral for his CFA exam.
A) VII(A)
B) VII(B)
A
Vasseur continues using “CFA” on business cards even though his membership has lapsed.
A) VII(A)
B) VII(B)
B
Reese states that earning the CFA designation helped him gain a deeper understanding of investment principles.
A) VII(A)
B) VII(B)
B
Hermosa argues with a proctor and disrupts other candidates during a CFA test session.
A) VII(A)
B) VII(B)
A
Pena submits live CFA exam questions to a prep provider offering cash for “real content.”
A) VII(A)
B) VII(B)
A
Nero shares specific questions from the Level III exam with colleagues still scheduled to take the test.
A) VII(A)
B) VII(B)
A
Rossi discusses the CFA exam questions with his study group after the exam, believing it was allowed.
A) VII(A)
B) VII(B)
A
Nero finds what appears to be a copy of the Level II CFA exam and shares questions from it in an online chatroom with two other candidates. They all use the questions to study.
What did Nero and the other two candidates do wrong?
a. Discussing study topics online is a violation
b. Sharing content suspected to be exam questions breaches exam confidentiality
c. They violated trading rules during the exam window
d. Posting anonymously protects them from any breach
b. Sharing content suspected to be exam questions breaches exam confidentiality
Violation: All three violated Standard VII(A): Conduct as Participants in CFA Institute Programs by distributing and using potentially authentic CFA exam content, which undermines exam integrity.
Chiu tries to file for a free Emergency Deferral by claiming a family death, first her uncle and then her mother. The documentation she submits is altered and untrue.
Which of the following is true about Chiu’s behavior?
a. Filing for a deferral is personal and need not be justified
b. Providing falsified documents violates testing integrity rules
c. Filing for a deferral is not part of CFA ethics
d. Only exam misconduct during testing hours is penalized
b. Providing falsified documents violates testing integrity rules
Violation: Chiu violated both Standard VII(A) and Standard I(C): Misrepresentation by submitting false documents and making fraudulent claims to manipulate the exam deferral process.
Whitcomb helps grade the CFA exam and later tells several CFA candidates which question he graded and how poorly most test takers performed on it.
Which best describes Whitcomb’s error?
a. Sharing performance statistics is acceptable
b. He should have discussed this only with CFA Institute staff
c. Revealing grading details breaches the agreement with CFA Institute
d. Former graders can share insights after the exam window closes
c. Revealing grading details breaches the agreement with CFA Institute
Violation: Whitcomb violated Standard VII(A) by disclosing specific grading content, which compromises the fairness and confidentiality of the CFA grading process.
At the testing center, Hermosa refuses to comply with the pocket check, becomes aggressive, curses at the proctor, and threatens her. His behavior alarms others and interrupts their exam experience.
What standard does Hermosa violate?
a. None, since he didn’t cheat on the exam itself
b. He violated rules regarding identification only
c. He disrupted the exam environment and breached professional conduct expectations
d. He violated GIPS standards
c. He disrupted the exam environment and breached professional conduct expectations
Violation: Hermosa violated Standard VII(A) by failing to adhere to testing rules and behaving unprofessionally, compromising both exam security and candidate experience.
Ramirez, a local CFA society program chair, arranges for only his consulting clients to present at society events, excluding other companies.
What is the ethical concern?
a. He is promoting CFA Institute exposure
b. Only global CFA positions are restricted
c. He used his volunteer role to benefit his private clients
d. Event programming is exempt from ethical scrutiny
c. He used his volunteer role to benefit his private clients
Violation: Ramirez violated Standard VII(A) by misusing his CFA Institute volunteer role to favor personal business interests, harming the integrity of the organization.
Gagne participates in an online forum thread after the exam, where participants recall and analyze challenging exam questions to determine the correct answers.
What ethical line was crossed?
a. None, since it occurred after the exam
b. Discussing difficult topics improves learning
c. Sharing or reconstructing specific questions is prohibited
d. Study group discussions are always allowed
c. Sharing or reconstructing specific questions is prohibited
Violation: Gagne violated Standard VII(A) by participating in post-exam discussions that involved disclosing and analyzing confidential exam content.
Warrenski, a member of the GIPS Technical Committee, tells clients that her position gives her an edge in helping them stay ahead of upcoming standards, implying access to confidential updates.
What standard did she breach?
a. She broke confidentiality of her personal practice
b. Stating committee membership is prohibited
c. She used her CFA volunteer status to market her firm’s services
d. Using the GIPS standards in practice violates disclosure rules
c. She used her CFA volunteer status to market her firm’s services
Violation: Warrenski violated Standard VII(A) by implying that her confidential knowledge as a CFA volunteer would benefit clients, compromising CFA Institute’s reputation.
During the exam, Sharma repeatedly looks at the screen of the candidate beside him out of curiosity to compare tests. His behavior is seen by a proctor and caught on camera.
What is Sharma’s primary ethical breach?
a. Curiosity is acceptable if there’s no copying
b. Eye movement is not a violation
c. Looking at another candidate’s screen is considered a breach of exam conduct
d. Only speaking during the exam would violate CFA rules
c. Looking at another candidate’s screen is considered a breach of exam conduct
Violation: Sharma violated Standard VII(A) by violating testing rules designed to preserve fairness and exam validity.
After retiring and not renewing his CFA Institute membership, Simpson prints personal business cards with his name followed by “CFA,” despite no longer being active in the investment field.
What should Simpson have done?
a. Use the CFA designation only in digital resumes
b. Avoid referencing CFA unless actively employed
c. Apply for retired status through CFA Institute procedures before continuing to use the designation
d. State he is a “former CFA charterholder”
c. Apply for retired status through CFA Institute procedures before continuing to use the designation
Violation: Simpson violated Standard VII(B) by misrepresenting himself as an active charterholder without fulfilling membership obligations.
After taking Level II, Rossi posts online that the exam was tough, mentions she thinks she did well on derivatives, and notes she was surprised by the absence of IPO questions.
Why is this a problem?
a. Talking about test difficulty is always prohibited
b. Revealing specific topics or question counts breaches exam confidentiality
c. Rossi didn’t name the exam provider
d. Online discussion is allowed post-exam
b. Revealing specific topics or question counts breaches exam confidentiality
Violation: Rossi violated Standard VII(A) by disclosing confidential content, which could give an unfair advantage to future candidates.
Pena, a CFA candidate, replies to a test-prep company’s request to share the hardest questions from the most recent exam, helping them improve future prep material.
What did Pena do wrong?
a. She should have sent her feedback directly to CFA Institute
b. Sharing exam questions externally breaches the confidentiality agreement
c. Answering surveys is optional and ethical
d. She acted unethically only if she shared answers
b. Sharing exam questions externally breaches the confidentiality agreement
Violation: Pena violated Standard VII(A) by disclosing confidential CFA exam content to a third party, which compromises exam security and fairness.
Yu writes down formulas on a small note and hides it in her sleeve before entering the exam center. A proctor sees her using it during the test and confiscates the note.
What is Yu guilty of?
a. Smart preparation but improper execution
b. Failing to memorize materials appropriately
c. Bringing unauthorized material into the exam room
d. Violating candidate promotion guidelines
c. Bringing unauthorized material into the exam room
Violation: Yu violated Standard VII(A) by bringing written notes into the testing room, which breaches exam rules and compromises the integrity of the testing process.
Zonder creates an ad stating that all principals at her firm passed the CFA exams on the first try and links this to the firm’s superior mutual fund performance.
Which part of the ad is inappropriate?
a. Mentioning exam performance at all
b. Highlighting CFA credentials without verification
c. Implying that passing the CFA exams on the first attempt results in better investment outcomes
d. Identifying the firm’s principals as charterholders
c. Implying that passing the CFA exams on the first attempt results in better investment outcomes
Violation: Zonder violated Standard VII(B) by linking CFA exam performance to superior investment performance, implying the designation guarantees skill or results.
Vasseur, a CFA charterholder, stops working in the investment industry and lets his membership lapse. Without reinstating, he begins working as an independent analyst and prints “CFA” on his business cards.
What is the ethical issue?
a. Using the CFA mark for self-promotion
b. Displaying the designation without active CFA Institute membership
c. Working in finance without employer sponsorship
d. Listing his charterholder year incorrectly
b. Displaying the designation without active CFA Institute membership
Violation: Vasseur violated Standard VII(B) by using the CFA designation without meeting the ongoing membership and professional conduct requirements.
Reese tells a friend that the CFA Program helped her learn a lot and that many employers require the CFA designation for investment roles. She also recommends the program.
Did Reese commit a violation?
a. Yes, because her opinion may influence someone’s decision
b. Yes, because she implied job guarantees
c. No, because she shared truthful, personal experiences and widely known facts
d. No, because she was speaking casually and not in a professional context
c. No, because she shared truthful, personal experiences and widely known facts
Violation: No violation. Reese complied with Standard VII(B) by stating factual, personal, and reasonable comments about the designation without exaggeration or misrepresentation.
Glass, a charterholder, comments anonymously on an investment blog using the signature “Expert, CFA” while withholding his real identity.
Why is this problematic?
a. Anonymous comments are never allowed
b. He revealed proprietary information from his firm
c. He misrepresented himself by using the CFA designation under a pseudonym
d. He violated the Code by giving free advice
c. He misrepresented himself by using the CFA designation under a pseudonym
Violation: Glass violated Standard VII(B): Reference to CFA Institute, the CFA Designation, and the CFA Program by using the CFA designation while concealing his identity. Presenting oneself as a charterholder requires transparency, and using “CFA” anonymously or under a pseudonym is considered a misrepresentation that compromises the integrity of the designation.
