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

A CFA charterholder lives and works in a country that has no securities laws or regulations governing a particular professional activity. Which course of action is most appropriate for the charterholder with respect to that activity?

The charterholder should adhere to the Code and Standards. When no applicable law or regulation exists, the Code and Standards set the required conduct, so the lack of local securities law does not permit a lower ethical standard than the Code requires.

  1. AFollow the Code and StandardsCorrect
  2. BFollow the customs of local firms
  3. CFollow the laws of her home country's neighbors

Explanation

Where no applicable law or regulation exists, members and candidates must adhere to the Code and Standards. The absence of law does not lower the required standard of conduct. Local customs or foreign laws that do not govern the member are not the benchmark.

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