Question #11
Reading: Reading 42.1 Standards of Professional Conduct Guidance for Standards I
PDF File: Reading 42.1 Standards of Professional Conduct Guidance for Standards I.pdf
Page: 5
Status: Correct
Correct Answer: A
Question
Janet Green, CFA, provides investment advice and other services to clients in several countries. She resides in Country A whose securities laws and regulations are less strict than the Code and Standards. She also conducts business with clients in Country B, which has no securities laws or regulations, and in Country C, which has securities laws and regulations that are stricter than the Code and Standards. Which of the following statements is CORRECT? According to CFA Institute Standards of Professional Conduct, Green must adhere to the Code and Standards in:
Answer Choices:
A. Country A and Country B but the law in Country
B. Country A but the law in Country B and Country
C. Country A, Country B, and Country C
Explanation
Green needs to follow Standard I(A) -- Knowledge of the law. In Country A, Green must
adhere to the Code and Standards because Country A's laws are less strict. In Country B,
Green must also adheres to the Code and Standards because Country B has no securities
laws. Because Country C's applicable law is stricter than the requirements of the Code and
Standards, Green must adhere to the laws of Country C.
(Module 42.1, LOS 42: I(A))