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CFA Level I · CFA Level I Exam · Code of Ethics and Standards of Professional Conduct

A candidate learns that a colleague's conduct is legal in their jurisdiction but violates the Code and Standards. According to the principles in the Handbook, the colleague's conduct is most accurately described as:

The conduct is a violation. Members and candidates must not engage in conduct that violates the Code and Standards even though it may otherwise be legal, because compliance with applicable law is only the minimum threshold of acceptable behavior.

  1. Aacceptable, because legality is the only test
  2. Ba violation, since members must not engage in conduct that violates the Code and Standards even though it may be legalCorrect
  3. Cacceptable if the firm approves it

Explanation

The Handbook states that members and candidates must not engage in conduct that constitutes a violation of the Code and Standards, even though it may otherwise be legal. Legal compliance is only the minimum threshold of acceptable actions.

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