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AcadiFi
ST
StandardsAction2026-05-21
cfaLevel IEthical and Professional Standards

Why do CFA Ethics answers focus so much on the action taken?

Sometimes an answer choice correctly identifies the problem but is still wrong. Why is naming the ethical issue not enough?

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AcadiFi Certified Professional

Ethics questions usually ask what the member or candidate should do, not merely what the issue is. The correct answer must resolve the ethical problem in a way that satisfies the relevant standard.

For instance, if a supervisor learns that a junior analyst may be using unsupported performance claims, the supervisor should investigate, correct the communication if needed, and strengthen supervision. An answer that says the supervisor should remind the analyst to be careful may identify the concern but fail to fix the process.

On exam day, translate each answer choice into an action. If the action does not disclose, stop, correct, document, escalate, or seek appropriate approval when required, it may be incomplete.

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