Q:
John King, a CFA, resides in Jurisdiction A, where the securities laws and regulations are more strict than the Code and Standards. However, he performs his business in Jurisdiction B, where the securities laws and regulations are less strict than the Code and Standards. Although Jurisdiction A's law applies, it states that law of locality where business is conducted governs. Which law must King adhere to?
a) Jurisdiction A's law
b) Jurisdiction B's law
c) The Law of Locality
d) The Code and Standards
A:
The correct answer is d.
Since the Law of Locality applies, and King performs his business in Jurisdiction B (where securities laws and regulations are less strict that the Code and Standards), he must follow the Code of Standards. As the AIMR Standards of Practice Handbook states, it is not acceptable for members to conduct activities that are are in violation of the Code of Standards, even if it is legal in the Jurisdiction where business is conducted.

RELATED FAQS

  1. A church that a registered representative (RR) attends plans to raise the funds necessary ...

    The correct answer is c) Although church bonds are normally considered to be exempt securities, the RR is obligated, by NASD ...
  2. Which of the following statements is (are) true with respect to the calculation of ...

    The correct answer is: a) (I) is incorrect because results that cover a period of less than a year must "not" be annualized. ...
  3. Which of the following terms are associated with the purchase/redemption of open-end ...

    The correct answer is b. Forward pricing is the SEC Rule that requires all transactions in open-end investment company shares ...
  4. Joanne Bume, CFA, is the head of research at large brokerage firm ...

    The correct answer is: a) The proper course of action would simply be to place Universal Airlines on a restricted list until ...
RELATED TERMS
  1. No results found.

You May Also Like

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!