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CFA Level I · CFA Level I Exam · Guidance for Standard III: Duties to Clients

A member's firm is based in a country where advisers have no legal fiduciary duty. A client asks whether the member must still act in the client's best interest. The most accurate response under Standard III(A) is that the member:

The member must still comply with the duties of loyalty, prudence, and care, regardless of any legally imposed fiduciary duty. Standard III(A) is a minimum benchmark for all members and candidates whatever their job title or local law, although stricter legal requirements must also be followed.

  1. Amust act in the client's best interest only if the client pays a fee for advice
  2. Bis required to comply with duties of loyalty, prudence, and care regardless of legally imposed fiduciary dutiesCorrect
  3. Cmust act as a fiduciary only where a legal fiduciary duty also applies

Explanation

Standard III(A) sets a minimum benchmark of loyalty, prudence, and care that applies regardless of job title, local law, or whether a legal fiduciary duty exists. It does not render members fiduciaries, but it requires working in the client's best interest whatever the job function. Where law imposes stricter requirements, the member must follow the strictest.

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