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

The GARP Code of Conduct is organized into principles and standards. Which statement about how it relates to local law and regulation is most appropriate?

Members must comply with applicable laws and regulations, and where the Code is stricter than local law they should follow the stricter standard. The Code does not replace law, and it is not merely advisory, because violations can result in disciplinary action.

  1. AWhere local law is less strict than the Code, members may follow local law alone
  2. BThe Code replaces local law for all members worldwide
  3. CThe Code is advisory only and violations carry no consequences for membership or certification
  4. DMembers must comply with applicable laws and should adhere to the stricter of the law or the Code where they differCorrect

Explanation

The Code requires compliance with applicable laws and rules, and where the Code sets a higher standard than the law, members should follow the stricter standard. It does not replace law, nor is it merely advisory, since violations can lead to disciplinary action.

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