Question

Albert and Tye, who recently started their own investment advisory business, have registered to take the Level III CFA examination. Albert's business card reads, "Judy Albert, CFA Level II." Tye has not put anything about the CFA designation on his business card, but promotional material that he designed for the business describes the CFA requirements and indicates that Tye participates in the CFA Program and has completed Levels I and II. According to the Standards, what is the CFA designation mentioned on Albert's business card?

1) CFA Level I
2) CFA Level II
3) CFA Level III
4) CFA Level IV

Answer 1

Albert's business card erroneously suggests a professional standing she has not yet attained by indicating 'CFA Level II' which is not an official designation. The proper usage should reflect passage of exams without implying possession of the CFA charter.

Step-by-step explanation:

The CFA (Chartered Financial Analyst) designation displayed on Judy Albert's business card as "Judy Albert, CFA Level II", indicates that she has passed the Level II exam but not that she currently holds the CFA charter. According to the CFA Institute's standards, one cannot use the CFA designation until they have passed all three levels of the exam, met the required work experience, and been officially granted the charter.

Albert's phrase suggests she has completed the Level II exam, which is factual if she did indeed pass that exam. However, it can be misleading to those not familiar with the CFA qualification as it implies a level of professional recognition that she does not yet have.Tye's promotional material correctly indicates participation in the CFA Program and completion of Levels I and II, without improperly suggesting he holds the CFA charter.