Karen James is a U.S. citizen, works for an investment advisor based in the US, and works in a country where investment managers are prohibited from participating in IPOs for their own accounts. What should she do regarding IPOs for her own account?

A. Participate in IPOs for her own account, as she is a US citizen and must follow the strictest US laws.
B. Refrain from participating in IPOs for her own account, as she is required to follow the laws where her firm is based, the Code and Standards, as well as the laws in the country where she is doing business.
C. Participate in IPOs for her own account, as her firm is based in the US and she is obligated to follow the laws of the country where her firm is based, not where she does business.

Correct Answer: B

She should refrain from participating in IPOs for her own account, as she is required to follow the laws where her firm is based, the Code and Standards, as well as the laws in the country where she is doing business.