Country A and Country B

CFA Level I
#1

You reside in Country A, which has the strictest laws. You do investment work in Country B, which has the least strict laws. Which laws must you follow? Definitely not Country B. But is it the Code and Standards or the laws of (the stricter) Country A?

#2

The stricter of country A or the code

#3

i say the stricter of B or the code what if you reside in country with weak laws but practice in country with stricter laws…you would follow stricter ones not the ones where you live, even if the ones where you live are stricter than the code.

#4

tend to agree with the guy with no life

#5

tough question - what is the given answer? I’s say the stricter law of A or the code…

#6

Yeah it’s has to be the stricter of country B or the code, If I live in Canada and do investment work in Iceland, what does Canada’s security law have anything to do with Iceland? They’d have no jurisdiction over there, the code is universal and more strict than Iceland so you’d have to follow the code.

#7

Depends on whether the country you do business states the law of locality where business is conducted governs, if that’s the case, follow stricter law of local or the code, otherwise, follow stricter law of the resident country or the law…

#8

That was my understganding of it but I came across an eample EXACTLY like his, and it ended up being country A with the strictest laws

#9

it is definately country A from my reading of the CFAI material - page 20 CFAI volume 1 - item 4 in the table.

#10

Reggie Wrote: ------------------------------------------------------- > Yeah it’s has to be the stricter of country B or > the code, > > If I live in Canada and do investment work in > Iceland, what does Canada’s security law have > anything to do with Iceland? They’d have no > jurisdiction over there, the code is universal and > more strict than Iceland so you’d have to follow > the code. That may be the case, but this is CFAI land.

#11

I bet for most things Reggie is right - This is all covered in the book. It depends on whether the Canadian law is more strict and whether it applies in the Iceland. Most securities laws about dealing with securities in Iceland would not apply because the standard is that Canadian law would say that the law of the locality applies. Then it’s Code vs Iceland law.

#12

The correct answer is more strict country. This exact example is spelled out in CFAI page 21 at the very top. Thanks all.