Hello,
Do you think this sentence is in accordance with the Standards concerning communication on the CFA charter?
“Completion of the rigorous CFA program has enhanced X’s financial skills, allowing him to better serve our clients and to increase the trust they put in [company].”
Thanks!
Misrepresentation? Absolutely!
“Enhanced X’s financial skills”: possibly.
“Better serve our clients”: possibly.
"Increase to the trust they put in ": unquestionably.
I think using the word “skills” is probably problematic.
Well, the following phrase comes from one of the CFA documents about Standard VII(B):
“Completion of the CFA program has enhanced my portfolio management skills” - correct
I don’t say that I’ll guarantee any superior performance or x more clients, I just say that I learned a lot, is that really problematic?
I don’t see any problems at all.
To S2000 comments, why is it a misreprentation to say that CFAs are more trustworthy? We’ve pledged to a code that requires us to be honest and fair, so it’s a factual statement.
It’s not a factual statement.
Others who haven’t made that pledge may be as trustworthy as covered persons who uphold their pledge.
Some covered persons don’t uphold their pledge.
CFA Institute says that you cannot say that you’re more ethical than the next guy; if you’re not necessarily more ethical, why are you necessarily more trustworthy?
Below are some examples from the CFA materials. I would say the last 2 parts of your sentence (regarding service and trust) might be considered a violation as they imply that CFA charterholders have some sort of superior abilities.
Improper References
• “CFA charterholders achieve better performance results.”
• “John Smith is among the elite, having passed all three CFA examinations in three consecutive attempts.”
• “As a CFA charterholder, I am the most qualified to manage client
investments.”
Proper References
• “Completion of the CFA Program has enhanced my portfolio management skills.”
• “John Smith passed all three CFA examinations in three consecutive years.”
• “The CFA designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.”
• “The credibility that the CFA designation affords and the skills the CFA
Program cultivates are key assets for my future career development.”
• “As a CFA charterholder I am committed to the highest ethical standards.”
• “I enrolled in the CFA Program to obtain the highest set of credentials in the global investment management industry.”
There’s a subtlety here.
The OP is not saying that charterholders are more trustworthy than non-charterholders. To do so would be a misrepresentation.
But he is saying that the CFA program has made him a more trustworthy individual because he completed a rigorous program that requires his adherence to the Code and Standards. And I think that’s okay, if in fact it is true.
If I read that in exam, I would definitely choose the answer that says violation.
Actually there’s no comparison in the sentence, I don’t say that I’m more trustworthy than the guy next to me. I only say that I have enhanced my skills (which is not a violation according to CFAI) and that this fact has enabled me to better serve my clients (not compared to another one but compared to myself pre-CFA) and that clients can have more trust (once again, not compared to trust in another person but compared to myself pre-CFA, as now as a CFA charterholder I have committed to the highest ethical standards).
But I see that it can be interpreted in many ways, so I’ll just change it to something more simple and I’ll submit the sentence to CFAI to be included in next year’s ethics exam…
Several years ago a university – I wish I could recall which one – tried an experiment with their business students. Half of the students took a course in ethics; the other half did not. The course had a number of case studies about unethical behavior. After that course finished, all of the students took part in a business simulation where, unbeknownst to them, their behavior was monitored extremely closely. The results were that the students who took the course on ethics demonstrated, on average, (statistically significantly) more un ethical behavior than the students who did not take the ethics course. (The speculation as to why is that, having covered the case studies, the students learned new ways to cheat that their uneducated counterparts didn’t know.)
There is nothing in the program that makes one more ethical nor more trustworthy; I submit that _those qualities stem from one’s character _, not from a classroom. Charterholders may have a greater awareness about how they’re supposed to behave, but that in no way equates to their behaving that way; at least, not merely because they’re charterholders.
When I see a firm that has a lot of CFAs on board, I know those guys have a lot to lose if they act unethically. This causes me to have greater trust in that firm.
I can also relate to your comparason of your post-CFA to your pre-CFA ethics, and I have often felt the same.
I think you’re okay.
Actually, there is. Wait for it . . .
So far, so good.
No complaint.
There’s the first comparison (you admit that yourself).
And there’s the second comparison (again, thanks for admitting it), and the problem: you’re saying that you’re more trustworthy now that you’re a charterholder. (If that were true – and OK – you should have been saying it as soon as you were a Level I candidate, but I digress.) This is not a fact; it is, at best, an opinion: yours. In essence, you’re saying, “You can trust me because . . . well . . . because I’ve said that you can trust me.” You cannot state that as a fact; it violates the Standards of Professional Conduct.
Frankly, I’d like to see what they have to say if you ask them about your original. And you should ask: nobody here (least of all yours truly) is an expert on ethics, but there are folks at CFA Institute who are. I, for one, would be very interested in hearing their opinion of the original.
S2000, the OP didn’t mix fact and opinion when he referenced trust. He didn’t say that he or his company are more trustworthy.
His sentence, “allowing him to … increase the trust they put in [company]” is one of client perception. He’s making the point that having CFAs working for a company allows clients to have more trust in that company. One can say this because CFAs have demonstated a committment to the Code and increased trust is a natural extension to that committment.
If I recall the examples in the book, I don’t think CFAI is critical of any statements representing the integrity of CFAs. They just don’t want us puffing our chests and crowing about our superior investment skills.
I think the OPs statement is correct and fair.
I submitted the sentence to CFAI, we’ll see what they have to say about it.
Instead of “skills” I personally would say something that communicates my added knowledge, rather than skills, but it is probably semantics. I error on the side of caution in these types of situations. I would feel more comfortable saying the following:
“Completion of the CFA program enhanced my understanding of the portfolio management process.”
I don’t think learning something and having skills are the same thing.
Same here. My two cents: if half the people on this thread are expressing discomfort, I would play it safe - let the designation (and my actions) speak for themselves and keep my comments factual and understated. If the end goal is to inspire trust, why take chances with a statement that may defeat that very purpose. There is enough unequivocal good that can be mentioned without raising eyebrows by drawing from CFAI-approved quotes.
And I disagree. I don’t believe that one can state as a fact that clients can trust one more because one has a CFA charter. People violoate their commitments all the time, and the public isn’t naïve.
As I say, he should send this to CFA Institute and get their view; that’s the only view that matters.
(And, as long as we’re talking ethics, you shouldn’t be referring to “CFAs”; you already knew that, of course.)
Fabulous!
I’m quite interested in their pronouncement.
We all know the rules.
[quote=“S2000magician”]