Ethics question(Book1 p.23 Exhibit1) law, first, understand, conducted, question

mdfb79

Hi,all
Book1 p.23 Exhibit1
I use CFAI text for the first time in L3…
In the first column of Exhibit1(“applicable law”),
(first row)
Member resides in LS country, does business in NS country;
LS law applies, but it states that law of locality where business is conducted governs.
* LS: country with less strict securities laws and regulations than the Code and Standards
* NS: country with no securities laws and regulations
I can’t understand this explanation..
If the local law governs, there is no applicable law isn’t it?
Please correct my understanding..
Thanks in advance.

Benjiko

LS = Less than Standards
NS = No Standards
So in this case the Code and Standards would apply.
Even though it states that when in the NS country - the locality where business is conducted governs, and this case, it would mean NO STANDARDS apply, the Code and standards are the applicable requirement.