Ethics Question! all, conducted, business, country

profil

4. A CFA charterholder resides in country A, where securities laws are more strict than the CFA Standards of Professional Conduct, and does all his business in Country B, where securities laws are less strict than the CFA Standards of Professional Conduct. The laws of Country A state that professional conduct is governed by the laws of the locality in which business is conducted. According to the Standards of Practice Handbook, the member has a duty to adhere to:
A. The laws of Country A
B. The laws of Country B
C. CFA Standards of Professional Conduct
I thought you ALWAYS adhere to the strictest laws? Am I wrong? I put A, the answer is C.

thisisbrianly

He only resides in Country A, the locality of the business in Country B. I suppose that’s why it’s not the strictest laws in this scenario

LPoulin133

Lopok at it this way. The law in A says follow the local law where you operate. It does not care if B is less strict. This means that in A vs B you chose the laws from B. Then, since B is looser than the standards, you have to follow the standards.