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

An FRM candidate is told by a colleague that the Code of Conduct is unnecessary because the candidate's employer already has a compliance manual and local law is followed. Which response is most consistent with the purpose of the GARP Code?

The Code sets professional standards that apply in addition to legal and employer requirements. Following local law or a firm's compliance manual does not remove a member's duty to meet the Code, and the Code does not replace law or employer policy either.

  1. AThe Code is void whenever the employer has its own compliance manual
  2. BThe Code applies only if local law is silent on the matter
  3. CThe Code replaces local law, so the employer's manual may be ignored
  4. DThe Code sets professional standards in addition to legal and employer requirements, so the candidate must still meet its expectationsCorrect

Explanation

The Code sets a professional standard that operates alongside law and employer policies. Being legally compliant or following a firm manual does not remove the individual's obligation to meet the Code. It also does not override law, so the replacement option is wrong.

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