What defines the applicable law? My understanding is that the applicable law is independent of where the member resides, does business, or where there client holds citizenship. Furthermore, unless it is otherwise stated, the applicaple law is the most strict set of regulations that a member might face. Then the applicable law is compared to the Code and Standards to determine which the member must adhere to. There is one scenario in particular that is confusing me on the bottom of pg.20 CFA text: “Member resides in LS country, does business in MS; LS law applies, but it states that law of locality where business is conducted governs.” So I understand given the stated condition that the law of locality where the business is conducted governs, and for this reason the more strict laws overwhelm the code and standards. However, without this conditional statement at the end, should the MS law apply anyways, rather than the LS law as stated in the text, for the simple reason that it is more strict?