) CLEANTECH'S ADVERTISING IS LEAST LIKELY IN VIOLATION OF THE CFA IN...

1.) CleanTech's advertising is least likely in violation of the CFA Institute Standards of

Professional Conduct with respect to:

A. use of the CFA designation.

B. expected performance results.

C. managers' volunteer activities.

Answer = C

"Guidance for Standards I–VII," CFA Institute

Standard VII(A): Conduct as Members and Candidates in the CFA Program; Standard

VII(B): Reference to CFA Institute, the CFA Designation, and the CFA Program

Disclosure of the managers' involvement with CFA Institute is not a violation of Standard

VII(A): Conduct as Members and Candidates in the CFA Program, because it does not

reveal any confidential information. But the CFA designation must always be used as an

adjective. In this situation, the designation has not been used as an adjective, thus the

statement is in violation of Standard VII(B): Reference to CFA Institute, the CFA

Designation, and the CFA Program (i.e.,the statement should read "the entire research

team is made up of CFA charterholders," rather than "they are all CFA's"). Members

must not exaggerate the meaning or implications of membership in CFA Institute or

holding the CFA designation, which Tang does, violating Standard VII(B).