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Ethics: less strict local law vs Code: follow local law?


New Member
Could pls someone confirm that it is different from CFA (where " In the event of conflict, Members and Candidates must comply with the more strict law, rule, or regulation."). GARP member should: "Where local requirements conflict with the Code, such requirements will have precedence.".

Thank you!


David Harper CFA FRM

David Harper CFA FRM
Staff member
Hi Plirts,

I may ping my GARP contact with your question (and I'll share their response) as, not only am I interested in ethics, but it seems like good question. Here is my mere opinion, and I will give GARP a chance to correct me:
  • GARP's Code of Conduct is younger (I think it has maybe two years of seasoning) and principles-based, as reflected in its relative brevity to the (at times) detail, and occasionally rules-based approach, of the CFA Standards
  • I think the GARP statement is entirely broad and conservative: if there is a conflict, local laws apply. (note, this is without a more/less strict modifier)
  • The CFA has a more detailed cluster of guidance, and your selected CFA statement is narrower: if the one is MORE STRICT than the other, be conservative and follow the strict. But that is a much narrower case than conflict, where most ethical conflicts do not present a on more/less strict yardstick. The CFA statement above will not help you in many cases, so must revert to their broader set of guidance.
That's my take.