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
Answer:
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.
