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

Maria, an FRM candidate, works at an asset manager. Her local law permits a practice that is less strict than the GARP Code of Conduct requires on a particular matter. Under the Code's overview, what should Maria do?

Maria should follow the stricter of the applicable law and the GARP Code of Conduct. Members must comply with both, so when local law is less demanding than the Code, meeting only the legal minimum would still violate the Code's higher ethical standard.

  1. AFollow the local law only, because the law takes precedence over any professional code
  2. BFollow the Code only if GARP has audited her employer
  3. CFollow the stricter of the applicable law and the Code, so she meets the higher standardCorrect
  4. DFollow whichever standard her supervisor prefers in writing

Explanation

Members must comply with applicable laws and regulations and also the Code; where they differ, the more strict standard governs. Following only the weaker local law would breach the Code. Supervisor preference does not override either standard.

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