Discussion of exam content: how is Standard VII(A) to be interpreted?

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defacto

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How is Standard VII(A) to be interpreted? Here’s the relevant excerpt.
“CFA Institute is vigilant about protecting the integrity of CFA Institute programs’ content and examination processes. CFA Institute program rules, regulations, and policies prohibit candidates from disclosing confidential material gained during the exam process.
Examples of information that cannot be disclosed by candidates sitting for an exam include but are not limited to
  • specific details of questions appearing on the exam and
  • broad topical areas and formulas tested or not tested on the exam.
All aspects of the exam, including questions, broad topical areas, and formulas, tested or not tested, are considered confidential until such time as CFA Institute elects to release them publicly. This confidentiality requirement allows CFA Institute to maintain the integrity and rigor of exams for future candidates. Standard VII(A) does not prohibit candidates from discussing nonconfidential information or curriculum material with others or in study groups in preparation for the exam.”
Clearly, the spirit of the Standard is not to offer prospective candidates any tip-off on material that could come to be re-tested, thus giving them an unfair advantage. The spirit does not appear to be preventing candidates having taken the exam from discussing questions and answers. But obviously since doing so would come at the expense of tipping off prospective candidates, the practice of discussing specifics is therefore banned.
However, at least from my understanding, discussing nonconfidential information or curriculum material, regardless of what inspires the discussion of the material, is not prohibited. So can this be interpreted as: “as long as I refer to the curriculum, and as long as I’m not being precise about something that was asked, I’m not violating the standard?”
For instance, let’s consider a hypothetical case of a question that would have been asked on a live exam
Question 6
S&P 500 level (real): 1800
Last quarter’s nominal earnings : 150
Average real earnings of the last 10 years : 100
Q: What is the Shiller cyclically-adjusted P/E?
If I then come on the forum and ask: “When calculating the CAPE, if I have the price level, nominal earnings and real 10y earnings, am I supposed to take the nominal earnings or the average real earnings of the last 10 years?”
Is my question and the subequent discussion considered a violation? The question is clearly inspired by the exam and the way the information is presented. But is it considered to have discussed exam specifics or just nonconfidential curriculum material?
 
I think you’ve answered your own question. To say,
“When calculating the CAPE, if I have the price level, nominal earnings and real 10y earnings, am I supposed to take the nominal earnings or the average real earnings of the last 10 years?”
The answer is avg real earnings of last 10 yrs
Could never be construed as a violation – its known that that info is in the cirriculum, and you’re seeking clarification.
But *anything* from the institute is by default a confidential communication between them and the candidate (you). I don’t think they delineate that sure other candidates see the same questions also – they treat it as one-on-one. Same with the mocks, same with the topic tests on the CFA website. You check a disclaimer that even specifies no portion of that question be republished anywhere, under any circumstance (including this forum).
In that vein, no, you cannot discuss, even in a roundabout way what is on the exam, or the topic tests, or the mocks, or basically anything.
My understanding:
1.) Gee question 1 was hard. – Good to go. It is public knowledge there will be a first question on the exam.
2.) (to use your example) Question 6, about the XYZ. – Violation, reasons stated above
 
The timing relative to the exam is relevant here. If you start a thread on a specific exam topic right after the exam, even without mentioning it being on the exam, it is clear enough to anyone who knows the content what you are discussing and anyone who doesn’t know the content has a reasonable suspicion of what it is about.
A few months later, probably not the case.
There is no clear cut, defined line, but in general it is best not to e-laywer with the CFA Institute since they don’t particularly have to justify their rulings.
 
I think the key phrase is “in preparation of the exam”
If you’re knowingly asking a question that is similar to an exam question, I’d assume you’re violating either I(A) Knowledge of the Law or I(D) Misconduct.
 
Mipato wrote:
The timing relative to the exam is relevant here. If you start a thread on a specific exam topic right after the exam, even without mentioning it being on the exam, it is clear enough to anyone who knows the content what you are discussing and anyone who doesn’t know the content has a reasonable suspicion of what it is about.
A few months later, probably not the case.
There is no clear cut, defined line, but in general it is best not to e-laywer with the CFA Institute since they don’t particularly have to justify their rulings.
Click to expand...
Good point! CFAI is both judge and prosecutor.
 
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