CFA Level I · CFA Level I Exam · Application of the Code and Standards: Level I
A member resides in a country with less strict securities laws than the Code and Standards and does business in a country with more strict securities laws. The member is most likely required to follow:
The member must follow the stricter country's law. Applicable law governs the member's conduct, and where it is stricter than the Code and Standards the member adheres to it; the weaker home-country law and a claim that the Code overrides law are both incorrect.
- Athe law of the country where the member resides.
- Bthe laws of the stricter country, since that law applies to the business conducted there.Correct
- Cthe Code and Standards only, because they override all laws.
Explanation
Per the exhibit on applicable law, a member residing in a less strict country but doing business in a more strict one must follow the more strict country's law. Members must comply with applicable law and also not violate the Code and Standards. The home law is less strict, so it is not the governing rule.
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