A doubt regarding violation of Code and Standards

[sonuvga]

I have a two question doubt regarding violation of the Code and Standards.

If a person registered for Level 1 in June 2010 & failed and did not give any further attempt (Registered for the test) for the same, can he call himself as a candidate for the CFA Program or not?

[Destroyer_of_Worlds]

Answer is simple. He may not.

[onlysimon]

just to take devils advocate… I think it is OK.

CFAI changed the social network rules in the last update of the standards.

Nobody can call themselves “candidate for the CFA Program” anymore. You must also add the year,- so probably the rule which you think should apply is not enforcable.

[itera]

There is no debate here. He cannot call himself a candidate. you are still a candidate when the exam is passed but you are waiting for results. once results are in, you are only a candidate if you have officially registered to repeat the level you failed, or registered to take the next level

[sonuvga]

This sounds like unanimous, however the doubt lies in the second question. As per my opinion/knowledge,

“All CFA Institute members and candidates enrolled in the CFA Program are required to comply with the Code and Standards.”

Source: CFA Institute website as per Standards of Practice Handbook, Eleventh Edition (effective 1 July 2014)

Now, does that mean a person who registered for June 2010 L1 and failed may be unethical from 2011-14 and then again be ethical from 2014-2015 when he registered himself for L1 for June 2015. Again if he fails, he has the option of being unethical after the results are out since he may not register and thus may neither be a member nor a candidate enrolled to comply with the Code and Standards…

[Destroyer_of_Worlds]

You can register to retake the exam the day you learn of a fail – that last point holds no water. As long as you are continuously enrolled and paid up, you can call yourself a candidate.

But I think the thread misses the real point, which is: Who gives a **** that someone is a Level 1 candidate? What a waste of real estate on a resume.

[sonuvga]

The doubt is not whether he should call himself a candidate or not, the doubt is occational shift between being Ethical and Un-Ethical depending on his current registration status…

[S2000magician]

This is, in fact, an interesting question.

The C&S apply _ only _ to covered persons: candidates, charterholders, members of CFA Institute.

If someone fails an exam and never reregisters, they’re, by definition, not a covered person: the C&S doesn’t apply to them. Hence, they cannot violate it.

[sonuvga]

@S2000magician

This is, in fact, an interesting question.

The C&S apply _ only _ to covered persons: candidates, charterholders, members of CFA Institute.

If someone fails an exam and never reregisters, they’re, by definition, not a covered person: the C&S doesn’t apply to them. Hence, they cannot violate it.

[itera]

@S2000magician

This is, in fact, an interesting question.

The C&S apply _ only _ to covered persons: candidates, charterholders, members of CFA Institute.

If someone fails an exam and never reregisters, they’re, by definition, not a covered person: the C&S doesn’t apply to them. Hence, they cannot violate it.

Actually, I recall a specific CFAI example (on the website) someone who was not enrolled for a L1 exam, and called himself a L1 candidate. And that person was sanctioned for violation of CFA regs.

[sonuvga]

Does it not create a loophole?

i.e. Ethical (Registered) - Unethical (Not Registered) [not recommended] - Ethical (Registered)…

[Monito]

I agree with the Magician. You cannot violate the code if you are not subject to it.

In any case be realistic. If someone is not a registered candidate or member of the CFAI and they say I’m a CFA. What can the CFAI do about it? Suspend them? Ban them? Throw peanuts at them? None of these are going to be effective in stoping someone claiming to be a Charterholder.

It kind of makes me wonder why I pay my dues.

[Destroyer_of_Worlds]

@S2000magician

This is, in fact, an interesting question.

The C&S apply _ only _ to covered persons: candidates, charterholders, members of CFA Institute.

If someone fails an exam and never reregisters, they’re, by definition, not a covered person: the C&S doesn’t apply to them. Hence, they cannot violate it.

Well, that’s true. But this behavior could cause the Institute to deny them from further participation in the program. If the violator doesn’t care about that, fine. But I would ask, even if they don’t care about that, are they subject to other SROs/regulatory entities like FINRA? If so, they will still be prohibited from inflating their credentials or status in recognized credential programs like the CFA. So it really isn’t smart to do this, even if they are not a covered person specifically under the Institute’s C&S.

[Monito]

I am not subject to any regulatory entities and I know a large number of others who likewise subject to no direct regulatory whch would be interested in them claiming to be a Charterholder when they are not.

Maybe we could petition the CFAI to set up stocks in front of the bull on Broadway and we could throw rotten bagels and muffins at them.

[itera]

The only way it doesn’t matter is if say a street hobo proclaimed himself a CFA charterholder. Anyone who is serious about a career in finance who tries to claim it would obviously be caught lying and never get a job. So what does it really matter that the CFAI can’t physically stop you or lock you up?

[S2000magician]

@itera

@S2000magician

This is, in fact, an interesting question.

The C&S apply _ only _ to covered persons: candidates, charterholders, members of CFA Institute.

If someone fails an exam and never reregisters, they’re, by definition, not a covered person: the C&S doesn’t apply to them. Hence, they cannot violate it.

Actually, I recall a specific CFAI example (on the website) someone who was not enrolled for a L1 exam, and called himself a L1 candidate. And that person was sanctioned for violation of CFA regs.

That’s really interesting.

[S2000magician]

@Destroyer_of_Worlds

@S2000magician

This is, in fact, an interesting question.

The C&S apply _ only _ to covered persons: candidates, charterholders, members of CFA Institute.

If someone fails an exam and never reregisters, they’re, by definition, not a covered person: the C&S doesn’t apply to them. Hence, they cannot violate it.

Well, that’s true. But this behavior could cause the Institute to deny them from further participation in the program. If the violator doesn’t care about that, fine. But I would ask, even if they don’t care about that, are they subject to other SROs/regulatory entities like FINRA?

But that’s a different question: have they violated FINRA’s C&S?

[sonuvga]

Well, my doubt is not restricted to being called a candidate or a Charterholder, it may also be extended to other Code and Standards say for example priority of transactions or duty to clients/employer, etc. or he may be allocating shares to himself in a hot IPO…

[ltj]

@Destroyer_of_Worlds

You can register to retake the exam the day you learn of a fail – that last point holds no water. As long as you are continuously enrolled and paid up, you can call yourself a candidate.

But I think the thread misses the real point, which is: Who gives a **** that someone is a Level 1 candidate? What a waste of real estate on a resume.

Can we circle back to this.

Why are you asking? For yourself or in regards to someone else?

[Destroyer_of_Worlds]

@S2000magician

@Destroyer_of_Worlds

@S2000magician

This is, in fact, an interesting question.

The C&S apply _ only _ to covered persons: candidates, charterholders, members of CFA Institute.

If someone fails an exam and never reregisters, they’re, by definition, not a covered person: the C&S doesn’t apply to them. Hence, they cannot violate it.

Well, that’s true. But this behavior could cause the Institute to deny them from further participation in the program. If the violator doesn’t care about that, fine. But I would ask, even if they don’t care about that, are they subject to other SROs/regulatory entities like FINRA?

But that’s a different question: have they violated FINRA’s C&S?

I’m pretty sure that FINRA would consider this “inflating one’s industry qualifications” at best, and outright misrepresentation at worst. Sanctionable event, in any case.