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

A CFA candidate is told by her supervisor that violating the Code and Standards is acceptable because the conduct is legal in her jurisdiction. Which statement best describes the candidate's responsibility?

She must not engage in conduct that violates the Code and Standards, even if it is legal. All CFA Institute members and candidates carry personal responsibility to uphold the provisions, so neither a supervisor's instruction nor her candidate status excuses a violation.

  1. AShe must not engage in conduct violating the Code and Standards even if it is otherwise legalCorrect
  2. BShe may follow her supervisor, since firm instructions override the Code and Standards
  3. CShe is bound only if she is a CFA charterholder rather than a candidate

Explanation

Members and candidates must not engage in conduct that violates the Code and Standards, even though it may otherwise be legal. The preamble states that all members, including CFA charterholders, and candidates have personal responsibility to uphold them. Options B and C contradict this.

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