CFA Level I · CFA Level I Exam · Application of the Code and Standards: Level I
A member practices in a country that has no securities laws or regulations and conducts business there. Which action is most appropriate under the Code and Standards?
The member should adhere to the Code and Standards. When no applicable law exists, nothing is stricter than the Code and Standards, so they set the required conduct. Local custom does not replace them and members cannot waive them.
- AAdhere to the Code and StandardsCorrect
- BFollow local custom and market practice
- CSeek an exemption from CFA Institute
Explanation
Where applicable law is not stricter than the Code and Standards, members must adhere to the Code and Standards. A country with no securities laws provides no stricter requirement. Local custom has no authority over the Code and Standards, and no exemption process is described.
Did you get it right without looking?
One question tells you little. A timed set on Application of the Code and Standards: Level I shows your real accuracy, how long you take and where you lose marks.
More Application of the Code and Standards: Level I questions
- Which statement about who is directly bound by the Code and Standards is most accurate?
- A CFA charterholder advises clients in a country that has no law or regulation on disclosing referral fees. Under the Code and Standards, th…
- An analyst lives in a country with less strict securities laws than the Code and Standards and does business in a country with no securities…
- Which statement about compliance with applicable law by a member practicing where securities regulation is absent is most accurate?
- A CFA charterholder lives in a country whose securities law is less strict than the CFA Institute Code and Standards. She does business with…
- Okafor, a CFA charterholder, lives in a country with less strict securities laws than the Code and Standards. His home law states that the l…