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CFA Level I · CFA Level I Exam · Code of Ethics and Standards of Professional Conduct

A member lives in Country X, whose securities law is less restrictive than the Code and Standards on a client-disclosure matter. Her clients live in Country Y, whose law is more restrictive than the Code and Standards on the same matter, and Country Y law governs her conduct. Under Standard I(A), she must most likely comply with:

She must comply with Country Y law, the more strict requirement. Standard I(A) says that in the event of conflict, members and candidates must comply with the more strict law, rule, or regulation, and here the applicable Country Y law imposes greater restrictions than the Code and Standards.

  1. Athe law of Country X, as her home jurisdiction
  2. Bthe more strict of Country Y law and the Code and Standards, which here is Country Y lawCorrect
  3. Cthe Code and Standards, because they apply to all CFA members

Explanation

Standard I(A) requires compliance with the more strict law, rule, or regulation when there is a conflict. Country Y law governs her conduct and is stricter than the Code and Standards, so it applies. Following the Code and Standards alone would fall short of the stricter law.

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