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

A CFA charterholder who works in several countries learns that the securities law of one country is stricter than the requirements of the CFA Institute Code and Standards. When working in that country, the charterholder most likely must:

The member must follow the stricter applicable law. The Handbook says that when law is stricter than the Code and Standards, members and candidates adhere to the law; when the Code and Standards are stricter or the law is silent, they adhere to the Code and Standards.

  1. Afollow the stricter applicable lawCorrect
  2. Bfollow the Code and Standards, since they are the global model
  3. Cfollow whichever of the two is easier to document

Explanation

The Handbook states that if applicable law is stricter than the Code and Standards, members and candidates must adhere to the law; otherwise they adhere to the Code and Standards. The second option reverses this rule, and the third has no basis in the Handbook.

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