Skip to content

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

A CFA candidate works in a country that has no law or regulation covering a particular practice, such as disclosing referral fees received for recommending an investment product. Under Standard I(A): Knowledge of the Law, the candidate is most likely required to:

The candidate must follow the Code and Standards and disclose the referral fees. When no law applies, or when the Code and Standards impose a higher responsibility, members and candidates must adhere to the Code and Standards, because legal compliance is only the minimum threshold of acceptable conduct.

  1. Afollow the Code and Standards and disclose the referral feesCorrect
  2. Brefrain from disclosure because no law requires it
  3. Cseek legal approval in another country before acting

Explanation

Where no law applies, or where the Code and Standards impose a higher degree of responsibility, members and candidates must adhere to the Code and Standards. The Code and Standards require disclosure of referral fees, so the lack of a local legal requirement is irrelevant. The second option wrongly treats the law as the ceiling rather than the minimum.

Did you get it right without looking?

One question tells you little. A timed set on Code of Ethics and Standards of Professional Conduct shows your real accuracy, how long you take and where you lose marks.

Practise Code of Ethics and Standards of Professional ConductFree diagnostic mock

More Code of Ethics and Standards of Professional Conduct questions