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CFA Level I · CFA Level I Exam · Application of the Code and Standards: Level I

An analyst lives in a country with less strict securities laws than the Code and Standards and does business in a country with no securities laws. The analyst's home law does not say that the law of the locality of business governs. The analyst is most likely required to follow:

The analyst must follow the Code and Standards. The home country's law applies but is less strict than the Code, and the other country has no law, so the Code and Standards impose the higher degree of responsibility and govern.

  1. Athe Code and StandardsCorrect
  2. Bthe law of the country where business is conducted
  3. Cno rule, because neither country's law is binding on conduct

Explanation

Per the Exhibit 1 illustration, the less strict home law applies, and it is less strict than the Code and Standards. The member must therefore adhere to the stricter Code and Standards. The business country has no law to apply.

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