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CFA Level I · CFA Level I Exam · Application of the Code and Standards: Level I

Wen Tanaka, a CFA charterholder, manages portfolios for clients in two countries. The securities law in one country is stricter than the Code and Standards. In that country, Tanaka is most likely required to:

Tanaka must adhere to the applicable law. When law is stricter than the Code and Standards, members and candidates must follow the law; otherwise they follow the Code and Standards. Convenience or client preference does not determine which applies.

  1. Aadhere to the Code and Standards, because they are the global model
  2. Badhere to the applicable law, because it is stricter than the Code and StandardsCorrect
  3. Cadhere to whichever is more convenient given the client's preference

Explanation

The Handbook says that if applicable law is stricter than the Code and Standards, members and candidates must follow the law; otherwise they follow the Code and Standards. Client preference does not override this rule.

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