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FRM Part I · FRM Exam Part I · GARP Code of Conduct

A GARP member is found to have breached the Code of Conduct. Which statement about the consequences described in the Code is most accurate?

A breach can lead to disciplinary action by GARP, including suspension or removal from membership and loss of the FRM designation or candidacy. This does not require a court conviction and extends to candidates and members, so the Code is enforceable rather than purely aspirational.

  1. ADisciplinary action may follow, which can include suspension or removal from GARP membership and revocation of the right to use the FRM designation or candidacyCorrect
  2. BThe only possible consequence is a written reminder, because the Code is aspirational
  3. CConsequences apply only if the member is also convicted in a court of law
  4. DConsequences apply only to FRM holders and never to candidates or other GARP members

Explanation

The Code states that violations may result in disciplinary action, including suspension or removal from membership and loss of the designation or candidacy. Disciplinary action is independent of any criminal conviction and applies to members and candidates as well as holders. It is not merely aspirational.

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