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CFA Level I · CFA Level I Exam · Code of Ethics and Standards of Professional Conduct

An analyst working in a country with no law on a particular practice must decide how to act. Which approach is most appropriate under the Code and Standards?

The analyst should adhere to the Code and Standards. Where no applicable law or regulation exists, or where the Code imposes a higher degree of responsibility, members and candidates must follow the Code and Standards rather than custom or future regulation.

  1. AAdhere to the Code and Standards, because no law appliesCorrect
  2. BAct as local custom suggests, because no law applies
  3. CWait for regulation to be enacted before acting

Explanation

In the absence of any applicable law or regulation, or when the Code and Standards impose a higher responsibility, members and candidates must adhere to the Code and Standards. Local custom and waiting for regulation are not the stated basis.

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