Ethical and Professional Standards Q55

55Shehroze Parvan, CFA, manages a balanced fund at McCoy Securities. He recently joined the company after working for ten years at Russell Securities. McCoy hired Parvan because of his proven track record at Russell. The new advertising material that Parvan develops for the clients of McCoy carries his past performance which he achieved at Russell as an endorsement of his knowledge and skills in investing. However, the performance results at the end include a qualifier stating, “These results were achieved by Parvan at Russell Securities.” Has Parvan violated any Standard?

Option : C
Explanation : No violation has occurred. It is acceptable to share past performance as long as a clear disclaimer is provided that this performance was achieved at another firm.

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