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CFA Level I · CFA Level I Exam · Guidance for Standard II: Integrity of Capital Markets

A CFA candidate works in a country where local custom accepts practices that undermine market fairness, and the country's standards are less developed than those elsewhere. Which approach is most consistent with CFA Institute's view of ethics for a global investment industry?

The candidate should follow universal ethical principles that support trust and integrity above local or regional customs and culture. Countries may differ in their stage of standards development, but the goal is fundamental ethical principles globally, so adopting harmful local custom is inappropriate.

  1. AFollow the ethical principles supporting trust and integrity, even where they are stricter than local customCorrect
  2. BAdopt the local custom, since standards develop at different rates by country
  3. CApply the Code and Standards only to clients based outside the country

Explanation

Ethics for a global industry should be universal and support trust and integrity above acceptable local or regional customs and culture. Countries may be at different stages, but the end goal is rules supporting fundamental ethical principles globally. Deferring to custom, or limiting application by client location, contradicts this.

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