Ethics question - CFA being the highest credential in the investment management industry

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DeadCatBounce

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Hi All,
I came past a ethics question in an item set i completed out of a previous CFA Mock. The question listed 3 statements that were made by a member and you were asked whether they complied with the code and standards. One of the options were something along the lines of “The CFA designation is the highest credential in the investment management industry”. I understand that the CFA designation is one of the most recognised in the industry but there are various other designations as well. Who are the CFAI to say that they are the best? Absolute crap question.
Your thoughts?
 
I thought the same thing: “Isn’t that a little subjective?”. But I chose that answer because it sounded like something the CFAI would say. :P
It is one of the highest, but I think it may be arguable whether it is the highest… though I am ignorant of some of the other credentials out there.
 
it probably said “one of” the highest
as long as he doesnt imply superior performance because of it, it’s ok
 
Andrew i quote out of the PM 2009 mock - Sherman tells prospective clients, “the CFA charter is the highest credential in the glibal investment management industry.
It troubles me that these type of questions were made by the institute themselves.
 
Agreed; it’s embarassing that the CFAI encourages these kinds of statements.
Presumably CFA charterholders are also permitted to say things like, “The CFA charter is a higher credential than a Masters in Investment Management from the Cass Business School.”
______________________
Sample Level II Item-Set Questions
http://www.cfainstitute.org/cfaprogram/courseofstudy/Documents/sample_level_II_itemset_questions.pdf
SMC Case Scenario
Sherman tells prospective clients, “The CFA charter is the highest credential in the global investment management industry. As charterholders we are committed to the highest ethical standards.”
1. In which of the following actions does Sherman most likely comply with the requirements and recommendations of the CFA Institute Standards of Professional Conduct? When he:
A. references the CFA program and designation.
B. provides performance information on the advisor’s website.
C. references the enhanced portfolio management skills of his team.
Answer: A
Sherman’s comments about his staff and the CFA Program are all acceptable
 
in most countries the cfa exempts the holder from further financial examination for local licenses.. inlcuding some finra exams. the cfa is represented in more countries than any other certification in “investment management”. its a broad field but actuary/accounting/risk is a diffirent specialization.
the CIMA is a “direct competitor” to the CFAI, but it doesnt qualify as an exemption to financial liscenses around the world. i just looked it up and it just seems like a parady compared to the cfa
http://www.imca.org/main/do/Designations

“Certify Your Professionalism
Sophisticated investors recognize that the financial world’s increasing complexities call for the objectivity, experience, and ethical evaluation of an advanced, specialized investment consultant and wealth advisor. Seeking the right professional is a challenge. Looking for one of IMCA’s credential holders makes the choice easier. “
 
Theres no global rank for the highest credential in the IM industry. This comment is an opinion not a fact that you can go around telling everyone.
If anything, the answer to that question should be C because the CFA designation aims to upskill candidates.
 
I’m certain that most business school deans would not agree that a CFA is a higher credential than a Masters in Investment Management, Masters in Finance, etc.
Some folks will tell you that CFA>MBA, but it’s not an actual mathematical proof.
 
Wendy wrote:
I’m certain that most business school deans would not agree that a CFA is a higher credential than a Masters in Investment Management, Masters in Finance, etc.
Some folks will tell you that CFA>MBA, but it’s not an actual mathematical proof.
Click to expand...
professional designation vs. academic degree
 
dvictr wrote: professional designation vs. academic degree
Click to expand...
Both a Masters in Investment Management degree, and a Chartered Finacial Analyst designation, are examples of credentials.
By claiming to offer the highest credential in investment management, the CFAI is essentially claiming that CFA>MBA etc.
 
stop comparing CFA to MBA, CFA is specifically for investment, MBA is not. End of story.
 
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