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FRM Part I · FRM Exam Part I · GARP Code of Conduct

A risk analyst who is a GARP member learns that a peer has clearly breached the Code of Conduct. Considering the Code's overview and purpose, which statement about the consequences of violating the Code is most accurate?

Breaching the Code can result in disciplinary action by GARP, with sanctions that may extend to removal from membership or revocation of a certification. Enforcement does not depend on employer action or criminal law, and there is no fixed automatic fine.

  1. AViolations are handled only by the member's employer, and GARP has no role
  2. BViolations can lead to disciplinary action by GARP, which may include sanctions up to removal of membership or revocation of a certificationCorrect
  3. CViolations are penalized only if they also break a criminal law
  4. DViolations carry an automatic fixed fine published in the annual Study Guide

Explanation

The Code is enforceable: GARP may take disciplinary action against violators, potentially including revoking certification or membership. Enforcement is not dependent on criminal liability, is not left only to employers, and there is no automatic published fine.

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