Question #41
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: 16
Status: Incorrect
Correct Answer: A
Your Answer: B
Question
CFA Institute believes:
Answer Choices:
A. that a maximum level of professional responsibility and conduct dictates that members be aware of and comply with laws, rules, and regulations governing their conduct
B. that a minimum level of professional responsibility and conduct dictates that members be aware of and comply with laws, rules, and regulations governing their conduct
C. that firms should comply with all domestic laws and regulations and that these laws also govern behavior in foreign markets, regardless of foreign laws and requirements
Explanation
CFA Institute's Code and Standards dictate a minimum level of conduct. Standards should
not be based on ethics of upper management and the board of directors of a company.
Firms must comply with the strictest applicable standards, whether they be foreign or
domestic laws and regulations.
(Module 42.1, LOS 42: I(A))