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

Which statement about compliance with applicable law by a member practicing where securities regulation is absent is most accurate?

Legal compliance is only the minimum threshold of acceptable conduct. Actions that go beyond the law to protect clients or act ethically further support Standard I(A), and conduct that is legal can still violate the Code and Standards.

  1. ALegal compliance is the minimum threshold, and going beyond it supports Standard I(A)Correct
  2. BLegal compliance is the maximum duty, so the Code adds nothing further
  3. CConduct that is legal cannot violate the Code and Standards

Explanation

Complying with applicable law is the minimum threshold of acceptable action, and exceeding it supports Standard I(A). Members must not engage in conduct violating the Code even if it is otherwise legal, which makes the other statements wrong.

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