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

A member lives in a country with more strict securities law than the Code and Standards and does business in a country with less strict law. His home law states that the law of the client's home country governs. His client is a citizen of the less strict country. The member is most likely required to adhere to:

The member must adhere to the Code and Standards. His home law defers to the client's home country law, but that law is less strict than the Code and Standards, and Standard I(A) requires compliance with the more strict requirement.

  1. Athe Code and StandardsCorrect
  2. Bthe law of the client's home country
  3. Cthe law of the member's residence only

Explanation

Home law defers to the client's home country law, which is less strict than the Code and Standards. Because applicable law is less strict, the member must adhere to the Code and Standards. Following the client's law alone would breach Standard I(A).

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