I’m finishing the CFA Institute Professional Conduct Statement as part of my membership application and wanted to sanity-check an edge case with the community.
In the last two years, I was terminated from an employer following performance issues. The employer explicitly stated there was no violation of policy or rules, and no allegation of fraud, dishonesty, or unethical conduct. There was no HR or compliance investigation, no regulator involvement, and no formal written client complaint provided to me.
Separately, a state unemployment benefits determination applied a statutory definition of “misconduct” (based on alleged failure to follow remedial instructions), resulting in a denial of benefits. This was an administrative benefits decision only — no findings of fraud, ethical violations, or professional misconduct in the CFA sense.
I’m trying to determine whether this fact pattern would require answering “Yes” to any PCS questions (particularly termination for cause or written complaints), or whether “No” responses are appropriate given that this appears to be a performance-based employment dispute rather than a professional conduct issue.
I’ve reviewed the PCS FAQ, Code & Standards (esp. I(D) and I(E)), and disciplinary precedents, — but I’m curious how others have seen similar situations handled in practice.
For anyone who’s dealt with PCS disclosures or has insight into how CFAI draws the line between employment disputes and professional conduct issues, I’d appreciate your perspective.
Based on the most helpful WSO content and insights into CFA Institute Professional Conduct Standards, here's what you need to know:
Your situation appears to fall into a gray area, but the key lies in the specific wording of the CFA Institute's Professional Conduct Statement (PCS) questions and the context of your termination. Here's a breakdown:
Termination for Cause:
Written Complaints:
Disclosure Best Practices:
Practical Advice:
In summary, based on your description, it seems reasonable to answer "No" to PCS questions about termination for cause or written complaints, as long as you are confident that the situation does not involve professional misconduct. However, if there's any ambiguity, a transparent disclosure with a clear explanation can help safeguard your application.
Sources: Fired for the first time, Being Fired and being upfront about it, Give me your phone or your fired, Quitting IB in 2023 - Burnout, https://www.wallstreetoasis.com/forum/job-search/suing-a-former-employer?customgpt=1
I would contact the CFAI and ask them.
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