Explanation

Statement 1 Analysis:

• This statement is factual and verifiable. It simply states that Pedersen passed all three CFA Program examinations in three consecutive years.
• According to Standard VII(B) - Reference to CFA Institute, the CFA Designation, and the CFA Program, members and candidates may reference the CFA designation and program participation as long as the references are factually accurate and not misleading.
• Statement 1 does not violate any CFA Institute Standards as it is a truthful statement about his examination history.

Statement 2 Analysis:

• This statement violates Standard VII(B) because it uses the term "elite" to describe CFA charter holders.
• The CFA Institute Standards prohibit members from making exaggerated claims about the CFA designation or implying superiority over other investment professionals.
• Using terms like "elite" suggests that CFA charter holders are superior to other investment professionals, which is not permitted under the Standards.
• Such language could mislead the public about the nature of the CFA designation and create unrealistic expectations.

Correct Answer: C - Yes, by making Statement 2 only.

Key Takeaway:

• CFA charter holders must reference their designation accurately and factually without making exaggerated claims or implying superiority.
• Statements about the CFA Program should focus on factual information (like passing exams) rather than subjective claims about status or superiority.
• The CFA Institute Standards aim to maintain the integrity of the designation and prevent misleading promotional claims.