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

A risk analyst who is an FRM candidate argues that the GARP Code of Conduct does not apply to her because she is not employed by a financial institution regulated by any authority. Which response is most consistent with the Code?

The Code applies to GARP members and to FRM candidates and holders, regardless of whether their employer is regulated. Being a candidate is sufficient to be bound by it, so her argument fails; it is not limited to certified individuals or exam sessions.

  1. AShe is correct, because the Code applies only to employees of regulated firms
  2. BShe is correct, because the Code applies only once the FRM certification has been awarded
  3. CShe is incorrect, because the Code applies to GARP members, including candidates for the FRM designation, regardless of employer regulationCorrect
  4. DShe is incorrect, because the Code applies only to candidates while they are sitting the exam

Explanation

The Code binds GARP members and FRM candidates and holders, not just certified individuals or employees of regulated firms. Its application is tied to membership or candidacy status, so the analyst's employer's regulatory status is irrelevant. Limiting it to exam sittings or to certification holders is too narrow.

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