CFA Institute - Voluntary Disclosures C

 

1. Prevention of Implied Contracts ("At-Will" Reinforcement)

• The Text: "I understand... this application is not an offer or contract for employment... [and] is not a promise or guarantee of future employment for any period of time."

• The Analysis: This is the most critical clause for the employer. In many jurisdictions, employment is "at-will" (meaning you can be fired at any time for any reason). However, oral promises or vague application language can sometimes be construed by courts as an "implied contract." This clause explicitly negates that possibility. It ensures that by applying, you are not gaining any rights to a job, nor a guarantee of keeping a job if hired.

2. Broad Authorization for Background Checks

• The Text: "I hereby authorize CFA Institute... to obtain consumer reports about me, including consumer credit reports, criminal records, driving records..."

• The Analysis: This section functions as a waiver of privacy regarding your history.

  • Scope: It is notably broad, covering not just criminal history but also "consumer credit reports" and "driving records." This suggests the employer views financial stability or driving history as relevant to the role.

  • Third-Party Involvement: It authorizes them to use outside agencies (which usually triggers compliance requirements under the Fair Credit Reporting Act in the US).

3. The "Reference Immunity" Shield

• The Text: "I release and indemnify CFA Institute and its agents against any liability that might result from making such background checks." and "release from liability all persons... supplying that information."

• The Analysis: This is a powerful defensive clause. It attempts to prevent you from suing the CFA Institute or your previous employers if a past employer gives you a bad reference that costs you this job. By signing this, you are effectively telling your past employers, "It’s okay to talk; I won't sue you for defamation or interference."

4. The "Resume Fraud" Trapdoor

• The Text: "Any omission or misstatement of material fact... shall be grounds for rejection... or for immediate discharge if I am employed, regardless of time elapsed before discovery."

• The Analysis: This is known as a "truthfulness clause." It gives the employer the absolute right to fire you for cause (which often denies you unemployment benefits/severance) if they discover a lie later.

  • "Regardless of time elapsed": This is the key phrase. If you lie about your GPA or a past job date today, and they find out five years from now after you have been promoted three times, they can still fire you strictly on the basis of this signed statement, without needing another reason.

5. Specific Regulatory/Program Preclusions

• The Text: "Certain positions... may be precluded from participation in the CFA Program..."

• The Analysis: This is specific to the CFA Institute. It highlights a potential conflict of interest. Employees of the organization that administers the CFA exam may be barred from taking the exam themselves to prevent unfair advantages or security breaches. This acts as a "condition of employment" notice.

Summary

By checking that box, the applicant is:

1. Confirming they are not guaranteed a job.

2. Waiving their right to sue for bad references.

3. Granting permission for a deep dive into their credit and criminal history.

4. Agreeing that any lie on the application is a "fireable offense" forever.