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Basic Question 4 of 7
Mack works for an investment bank with headquarters in New York City. He lives and works in a country where local securities laws and regulations are stricter than CFA Institute's Code and Standards and U.S. securities laws and regulations. Which securities laws and regulations should Mack be subject to?
User Contributed Comments 9
| User | Comment |
|---|---|
| zuke | Simple rule of thumb. Always abide by the most strict regulations in your dealings |
| sunilcfa | This is not overall but on specific instances right? |
| durikang | Local securities laws and regulations |
| eb2568 | zuke, I think you are correct but I would add that unless there is a conflict. In a conflict, I think you must abide by the local law. Unless CFA has been so arrogant as to suppose that they supercede state law :) |
| riouxcf | Can you give an example of a conflict? It would be hard to imagine a situation where a CFA standard would be "illegal" because a state law conflicts with it. It's more likely that the CFA standard will be more strict. Complying with a more strict regulation does not violate the less strict regulation. Right? |
| johntan1979 | I think some of you misunderstood the meaning of stricter than the local law. This does not mean CFA code is above the law. CFA code is stricter means the local law is less strict, and if you follow a stricter law, that is even better from the local authorities' perspective. You are not going against the local law by following a stricter law or code. |
| vatsal92 | Rule of thumb is to choose the stricter regulations |
| sungryongl | what if rules are different from where he lives and conducts his business. suppose he lives in a place where less strict regulations than CFA rules are applied and works in a place with more strict regulations than CFA rules (vice versa).. than what rules should he follow? |
| weebe | @sungryongl He should follow the strict regulations in his work place (because they are the strictest) |
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Learning Outcome Statements
demonstrate the application of the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity
recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct
identify conduct that conforms to the Code and Standards and conduct that violates the Code and Standards
CFA® 2024 Level I Curriculum, Volume 6, Module 3.