Q10 - CFAi Q Bank - record retention and knowledge of law

CFA Level III Ethics
#1

hi all

an Ethics question related to record retention:

Bukenya then reviews Jacaranda’s record-keeping policy. Currently, the policy requires retention of hard copies of all supporting documentation for investment recommendations and decisions made during the last five years.

and here is an exurpt of the anwer:

while the Standard (for rention time frame] recommends files be retained for a minimum of seven years, Jacaranda is still in compliance with the Standard in that it meets local requirements.

i am confused, i though that we need to go with the toughest law (including CFA) as long as they do not contradict each other. how come the retention is not for 7 years?

#2

The key word is the standard recommends as opposed to the standard requires. If the standard required 7 years, then your argument would be spot on.

#3

makes sense!

so no requirement by the standard, right?

#4

correct