CFA Level I · CFA Level I Exam · Application of the Code and Standards: Level I
A member resides in a country with no securities laws and does business in a country whose securities laws are more strict than the Code and Standards. The member is most likely required to follow:
The member must follow the laws of the more strict country. Because those laws impose greater restrictions than the Code and Standards, they are the applicable law, and the more strict requirement governs when applicable law and the Code differ.
- Athe Code and Standards only
- Bthe laws of the more strict countryCorrect
- Cwhichever rule is more convenient for clients
Explanation
Under the Exhibit 1 illustration, a member living in a no-law country but doing business in a more strict country is governed by the more strict law. Following the Code alone would fall short of the greater restrictions imposed by that law.
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