Cautionary letter
A letter issued after an inquiry where conduct warrants attention but not discipline. It is not a disciplinary sanction.
Where you will meet it
Cautionary letter appears in 3 learning outcomes on the CFA syllabus. A few of them:
- Explain how CFA Institute polices the Code and Standards through its Professional Conduct Program
“Professional Conduct staff investigate and, once the inquiry is complete, may take no action, issue a cautionary letter where conduct warrants attention but not discipline, or propose a disciplinary sanction.”
- Set out how CFA Institute's Professional Conduct Program is organised and the disciplinary steps it uses to uphold the CFA Institute Code and Standards
“Staff can close a case with no action, send a cautionary letter, or propose charges and a sanction.”
- Outline the make-up of CFA Institute's Professional Conduct Program and the steps by which it investigates and disciplines breaches of the Code and Standards
“After investigating, staff may close the matter, issue a cautionary letter, or propose charges and a sanction; if they are rejected, a hearing panel decides.”
Practise it
Practise cautionary letter until it is automatic: questions that explain every wrong option.
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