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

A CFA candidate lives in a country with no securities laws and does business in a country whose securities laws are more strict than the Code and Standards. The candidate must most likely follow:

The candidate must follow the more strict securities laws of the country where the business is conducted. Exhibit 1 states that MS law applies when an NS-country resident does business in an MS country, and the stricter requirement prevails over the Code and Standards.

  1. Athe Code and Standards only
  2. Bthe securities laws of the country where the business is conductedCorrect
  3. Cthe law of the candidate's home country, which is silent on the matter

Explanation

Under Exhibit 1, a member residing in an NS country and doing business in an MS country is governed by the MS law. That law is stricter than the Code and Standards, so the more strict requirement governs. Following the Code and Standards alone would fall short of the stricter law.

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