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

Standard VII(B) is intended to assure factual representations relating to CFA Institute and prohibit members and candidates from making unsupported statements promising competence or performance that are tied to CFA Institute membership, the CFA designation, or candidacy in the CFA Program.

Standard VII(B) is not intended to prohibit factual statements related to the positive benefits of earning the CFA designation. The benefits of CFA Institute membership and holding the CFA designation are evident. Statements referring to CFA Institute, the CFA designation, or candidacy for the CFA designation that overstate the competency of an individual or assert or imply that superior performance can be expected from someone with the CFA designation are prohibited by the standard.

Statements that highlight or emphasize the commitment of CFA Institute members, CFA charterholders, and CFA candidates to ethical and professional conduct or mention the thoroughness and rigor of the CFA exams are appropriate. Members and candidates may make claims about the relative merits of CFA Institute, the CFA exams, or the Code and Standards as long as those statements are implicitly or explicitly stated as the opinion of the speaker. Statements that do not express opinions must be supported by facts.

Standard VII(B) applies to any form of communication, including but not limited to communications made in electronic or written form (such as communications on firm letterhead, business cards, professional biographies, directory listings, printed advertising, LinkedIn pages, email signatures, websites, or personal resumes) and in oral statements made to the public, clients, or prospects.

Use of the CFA designation by a CFA charterholder is governed by the terms and conditions of the CFA Institute Membership Agreement and applicable laws.

The term “CFA Institute member” refers to “regular” and “affiliate” members of CFA Institute who have met the membership requirements as defined in the CFA Institute Bylaws. Membership requirements include satisfying the following requirements on an annual basis:

• complete a CFA Institute Membership Agreement,
• remit to CFA Institute a completed Professional Conduct Statement, which renews the commitment to abide by the requirements of the Code and Standards and the CFA Institute Professional Conduct Program, and
• pay applicable CFA Institute membership dues.

If a CFA Institute member fails to meet any membership requirement established by CFA Institute, the individual is no longer considered a member. Until membership is reactivated, individuals must not present themselves to others as members and must remove all references to CFA Institute membership from social media profiles, business communications, reports, and anywhere else membership is referenced. Former members may state, however, that they were CFA Institute members in the past or refer to the years when they met the requirements of CFA Institute membership.

Charterholders are encouraged to use the designation but, in doing so, must state their charterholder status in a manner that is accurate and does not exaggerate the benefits of the charter. The use of the designation may be accompanied by an accurate explanation of the requirements that have been met to earn the right to use the designation.

“CFA charterholders” are those individuals who have earned the right to use the CFA designation granted by CFA Institute. Once granted the right to use the designation, individuals must also satisfy CFA Institute annual membership requirements to maintain their right to use the designation.

If a CFA charterholder fails to meet any membership requirement, he or she forfeits the right to use the CFA designation. Until membership is reestablished, individuals must not present themselves to others as CFA charterholders and must remove all references to the CFA designation from social media profiles, business communications, reports, and anywhere else the designation is referenced. Former members may state, however, that they were charterholders in the past.

On social media, where individuals may anonymously express their opinions, pseudonyms or online profile names created to hide a member’s identity must not be tagged with the CFA designation.

Candidates for the CFA designation may reference their candidacy, but such references must clearly state that an individual is a candidate for the CFA designation. Candidates must not state or imply that they have achieved any type of partial designation in a manner not authorized or permitted by CFA Institute. A person is a candidate for the CFA designation if (1) CFA Institute has accepted the person’s application to be a candidate for the designation, as evidenced by issuance of a notice of acceptance, and (2) the person is enrolled to sit for a specified examination or the person has sat for a specified examination but exam results have not yet been received.

If an individual declines to sit for an exam for which they have enrolled or otherwise does not meet the definition of a candidate as described in the CFA Institute Bylaws, then that individual is no longer considered a candidate. Once the person is enrolled to sit for a future examination, his or her candidacy resumes.

Except and only to the extent as authorized or permitted by CFA Institute, candidates for the CFA designation must never state or imply that they have a partial designation as a result of passing one or more levels of the CFA exam. Candidates also must not cite an expected completion date for earning the charter. Final award of the charter is subject to meeting the requirements for the designation established by CFA Institute and approval by the CFA Institute Board of Governors.

If a candidate passes each level of the exam in consecutive sittings and states that he or she did so, that is not a violation of Standard VII(B), because it is a statement of fact. If the candidate then goes on to claim or imply superior ability as a result of obtaining the designation and not failing any of the exams, however, he or she is in violation of Standard VII(B).

Exhibit 1 provides examples of proper and improper references to the CFA designation.

Exhibit 1. Proper and Improper References

Members and candidates should disseminate written information about Standard VII(B) and the accompanying guidance to their firm’s legal, compliance, public relations, and marketing departments.

For materials that refer to employees’ affiliation with CFA Institute, members and candidates should encourage their firms to create templates that are consistent with Standard VII(B). This practice promotes consistent and accurate references to CFA Institute membership, the CFA designation, and candidacy for the CFA designation.

Zonder drafts and publishes an advertisement for her firm, AZ Investment Advisers, which states that all the firm’s principals are CFA charterholders and all passed the three examinations on their first attempt. The advertisement prominently links this fact to the notion that AZ’s mutual funds have achieved superior performance.

Five years after receiving his CFA charter, Vasseur resigns his position as an investment analyst and spends the next two years traveling abroad. Because he is not actively engaged in the investment profession, he does not file a completed Professional Conduct Statement with CFA Institute and does not pay his CFA Institute membership dues. As a result, his CFA Institute membership has lapsed. At the conclusion of his travels, Vasseur becomes a self-employed analyst accepting assignments as an independent contractor. Without reinstating his CFA Institute membership, he prints business cards that display “CFA” after his name.

After a 25-year career, Simpson retires from his firm. Because he is not actively engaged in the investment profession, he does not file a completed Professional Conduct Statement with CFA Institute and does not pay his CFA Institute membership dues. Simpson designs a plain business card (without a corporate logo) to hand out to friends with his new contact details, and he continues to put “CFA” after his name.

Reese has been a CFA charterholder since 2000. In a conversation with a friend who is considering enrolling to be a candidate for the CFA designation, she states that she learned a great deal as a CFA candidate and that many firms require their employees to be CFA charterholders. She would recommend the CFA Program to anyone pursuing a career in investment management.

Glass is the lead quantitative analyst at CityCenter Hedge Fund. Glass is responsible for the development, maintenance, and enhancement of the proprietary models the fund uses to manage its investors’ assets. Glass wants to comment on an article posted on an investor blog. His comment will contain information related to his work that he believes will be helpful to investors. However, he does not want to reveal his identity, so he publishes the comment with the signature line, “Expert, CFA.”