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

Maria is an FRM candidate who works in a jurisdiction whose law is less strict than a specific requirement in the GARP Code of Conduct. Under the Code, what should Maria do?

Maria should follow the stricter of the applicable law and the Code's standards. The Code expects members to comply with laws and regulations as well as its own principles, and where the two differ the more stringent requirement governs, so following only the weaker local rule would breach the Code.

  1. AFollow the local law only, because it is the governing authority
  2. BFollow the stricter of the applicable law and the Code's standardsCorrect
  3. CFollow the Code only where it is less strict than local law
  4. DDisregard both and rely on her employer's internal policy

Explanation

The Code requires members to comply with applicable laws and regulations and also with the Code's standards; where they differ, the more strict requirement governs. Following only local law would breach the Code. Employer policy does not override either.

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