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. Donald has been putting aside money for his retirement into a Roth IRA for six years.  Although ...

    The correct answer is A) In a Roth IRA, there is no required distribution date as there is in a traditional IRA.
  2. A 7-year, 6% coupon callable bond is currently trading at 96.25.  The ...

    Free info on financial certification exams including study guides, exam questions, and much more!
  3. According to SEC Release IA-1092, which of the following would NOT qualify as an ...

    The correct answer is C). SEC Release IA-1092 considers financial planners, pension consultants and sports and entertainment ...
  4. Your client, Todd, owns 100 shares HAT stock in his taxable stock portfolio ...

    The correct answer is a): Since Todd owns the stock and expects another stagnant year ahead, he would employ a covered call ...
RELATED TERMS
  1. No results found.

You May Also Like

Related Articles
  1. No results found.
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!