Skip to content

CFA Level I · CFA Level I Exam · Application of the Code and Standards: Level I

A candidate resides in a country with less strict securities law than the Code and Standards and does business in a country with no securities laws. Her home law states that the law of the locality where business is conducted governs. Which approach is most appropriate for her?

She should follow the Code and Standards. Her home law defers to the business locality, which has no securities law, so no applicable law is stricter than the Code and Standards. They therefore set her obligations.

  1. AFollow the Code and StandardsCorrect
  2. BFollow the less strict law of her country of residence
  3. CFollow no formal requirement because the local country has no laws

Explanation

Her home law defers to the locality, which has no laws, so no applicable law is stricter than the Code and Standards. She therefore must adhere to the Code and Standards. Following the lenient home law would fall below that standard, and having no formal requirement is not an option for a member or candidate.

Did you get it right without looking?

One question tells you little. A timed set on Application of the Code and Standards: Level I shows your real accuracy, how long you take and where you lose marks.

Practise Application of the Code and Standards: Level IFree diagnostic mock

More Application of the Code and Standards: Level I questions