CFA Level I · CFA Level I Exam · Application of the Code and Standards: Level I
A member's compliance with applicable securities law, in a country where the law is silent on a conflict of interest, is best described as:
Legal compliance is best described as the minimum threshold of acceptable actions. Members must still avoid conduct that violates the Code and Standards even when it is legal, and actions that exceed legal minimums to protect clients further support Standard I(A).
- Asufficient to meet Standard I(A) in all cases
- Bthe minimum threshold of acceptable actionsCorrect
- Cirrelevant to the member's professional conduct
Explanation
The guidance says complying with applicable laws is the minimum threshold of acceptable actions. Members must not engage in conduct that violates the Code and Standards even if it is legal. Going beyond the law to protect client interests further supports Standard I(A).
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