CFA Level I · CFA Level I Exam · Application of the Code and Standards: Level I
Which statement about who is directly bound by the Code and Standards is most accurate?
The Code and Standards apply to individual CFA Institute members and to candidates for the CFA and CIPM designations. Firms are only encouraged to adopt them, and the separate Asset Manager Code is the document designed for firms.
- AThey apply to individual members of CFA Institute and candidates for the CFA and CIPM designationsCorrect
- BThey apply to asset management firms as legal entities
- CThey apply only to charterholders working in jurisdictions with weaker securities laws
Explanation
The Handbook states the Code and Standards apply to individual members and to candidates for the CFA and CIPM designations. Firms are encouraged to adopt them, and the separate Asset Manager Code applies to firms. They are not limited to weaker-law jurisdictions.
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