Imagine you run an investment advisory business for retail clients. Both you and the client reside in country A. Country A’s laws governing the conduct of your particular line of business are just as strict as the CFA Code and Standards. However, Country A has a number of competing professional associations whose rules and regulations are not in any way endorsed by the country’s laws. No one association has a membership that comprises the majority of investment advisory professionals practicing in country A. There is one or two such associations that are guided by “protectionist” principles and have rules against their members advising clients to invest money in non-domestic instruments. This rule is not a government law, but merely a rule of one of the professional associations in the country. Do you have to comply with this rule in order to avoid violating Standard I A.?
No.
Thanks for the reply. Is that because: a) you dont have to observe rules that are not backed by government or law or, b) it is not considered common or expected practice in the country to comply with this rule (given that the number of practitioners who are members of these associations and follow these strict rules do not constitute a majority of practitioners)? Thanks again.
It’s not the law or a standard (or even a common sense ethical rule), so why would you follow it?
that don’t confront anybody, as long as you get your money next friday…
?