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

Which statement best describes the relationship between the Code of Ethics and the Standards of Professional Conduct, as presented in the Handbook?

The Code contains high-level aspirational ethical principles, and the Standards contain practical principles of conduct that members and candidates must follow. The Handbook says they should be viewed and interpreted as an interwoven tapestry of ethical requirements, applying to individuals rather than firms.

  1. AThe Code holds high-level aspirational principles, while the Standards hold practical conduct requirements, and the two should be interpreted together.Correct
  2. BThe Code applies only to firms, while the Standards apply only to individual members.
  3. CThe Standards are aspirational goals, while the Code sets out the mandatory procedures.

Explanation

The Handbook describes the Code as high-level aspirational principles and the Standards as practical principles of conduct members must follow, viewed as an interwoven tapestry. Both apply to individual members and candidates; the firm-level document is the Asset Manager Code.

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