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 CFA Institute guidelines, your situation seems to fall into a gray area, but here's how you might approach it:
CFA Professional Conduct Standards: The CFA Institute's Professional Conduct Statement (PCS) focuses on ethical violations, fraud, dishonesty, or professional misconduct. Since your termination was explicitly stated to be due to performance issues and not related to any policy violations, fraud, or unethical behavior, it does not appear to meet the threshold for disclosure under the PCS.
Termination for Cause: While the term "cause" can be broad, the CFA Institute is primarily concerned with causes tied to ethical or professional misconduct. Your case, as described, seems to be a performance-based employment dispute rather than a professional conduct issue. The lack of HR or compliance investigations, regulator involvement, or client complaints further supports this interpretation.
Unemployment Benefits Denial: The denial of unemployment benefits due to "misconduct" under a statutory definition does not necessarily equate to professional misconduct in the CFA sense. Administrative decisions like these are often based on employment law and may not align with the ethical standards of the CFA Institute.
Disclosure Approach: If you are confident that there were no ethical violations, fraud, or dishonesty involved, a "No" response to the PCS questions seems appropriate. However, if there is any ambiguity or concern, you could consider proactively disclosing the situation with a clear explanation that it was a performance-based termination unrelated to professional conduct. Transparency can sometimes be the best approach to avoid future issues.
Practical Insight: From previous WSO threads, members have emphasized that the CFA Institute values honesty and integrity. If you choose to disclose, frame it factually and emphasize the absence of ethical or professional misconduct. This can demonstrate your commitment to the CFA Code of Ethics.
Ultimately, if you're uncertain, consulting with a legal or compliance professional familiar with CFA standards could provide additional clarity.
Sources: Give me your phone or your fired, Fired for the first time, https://www.wallstreetoasis.com/forum/job-search/suing-a-former-employer?customgpt=1, Caught interviewing and asked to leave, Quitting due to health reasons
The answer is No. you're fine
Any particular reason?
Perspiciatis quod rerum qui. Numquam qui iure vero et ipsum et sit corrupti.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...