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CFA Level I · CFA Level I Exam · Guidance for Standard I: Professionalism

A CFA charterholder works in a country whose securities regulations are less strict than the CFA Institute Code and Standards. The local law is the only law that applies to the charterholder's activities. Under Standard I(A) Knowledge of the Law, the charterholder most likely must:

The charterholder must follow the Code and Standards. Standard I(A) requires compliance with the stricter of the applicable law and the Code and Standards, and here the Code is stricter than the local law, so meeting only the local requirements would be a violation.

  1. Afollow the local law, because it is the applicable law
  2. Bfollow the Code and Standards, because they are stricter than the applicable lawCorrect
  3. Cfollow whichever requirement is less costly to comply with

Explanation

Standard I(A) requires members and candidates to comply with the more strict law, rule, or regulation in the event of conflict. The Code and Standards are stricter than the local law here, so they govern. Following the local law alone would permit conduct the Code prohibits.

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