CFA Level I · CFA Level I Exam · Code of Ethics and Standards of Professional Conduct
A candidate's local law permits a practice that is legal but violates the Code and Standards. Which action is most appropriate for the candidate?
The candidate should refrain from the practice. Members and candidates must not engage in conduct that violates the Code and Standards even if it is legal, and when law and the Code differ they must follow the more strict of the two.
- AEngage in the practice because compliance with law is sufficient
- BEngage in the practice if the employer's policy permits it
- CRefrain from the practice because the Code and Standards are stricterCorrect
Explanation
Members and candidates must not engage in conduct that violates the Code and Standards even though it may otherwise be legal. When the two differ, the more strict applies. Employer permission or legality does not override this.
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