Misleading Performance Figures and CFA Ethics

Hard Cfa Institute Code And Standards Responsibilities - Reference To Cfa

During a recent ethics seminar, financial analyst Marcus enthusiastically shared his perspective on the CFA Institute Code of Ethics and Standards of Professional Conduct. He emphasized the importance of maintaining professional integrity and stated that it is acceptable to use misleading performance figures as long as they are disclosed in some form. Marcus further pointed out that using such figures could sometimes attract more clients, which would ultimately lead to greater overall benefits for the firm.

Given Marcus's statements during the seminar, which of the following best reflects the CFA Institute's Code and Standards regarding the ethical considerations of performance reporting?

The use of misleading performance figures, regardless of disclosure, is a violation of the CFA Institute Code, as it undermines the integrity and objectivity that all professionals must uphold.

As long as performance figures are disclosed, they can be used misleadingly since it benefits both the clients and the firm.

Performance figures can be modified for marketing purposes if it is stated that these figures are not guaranteed in the future.

Hint

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