What to know
Identify the rule, formula, or decision criterion before reading the answer choices. CFA Level I distractors often use the right vocabulary with the wrong condition.
Ethical and Professional Standards
Standard I(A) Knowledge of the Law practice questions
Standard I(A) Knowledge of the Law is part of CFA Level I Ethical and Professional Standards. Ethics questions test judgment under the Code and Standards, especially duties to clients, employers, markets, and the CFA Program. Use this page to review the controlling ideas, then work through 5 questions with answer explanations and common traps.
Review the worked explanations before moving into adaptive practice. The app version can mix this topic with due reviews and weak related concepts.
Practice this topicHow to practice
Work each item under time pressure, then compare your reasoning with the step-by-step explanation and key takeaway.
Review signal
Missed questions should become scheduled reviews when the error comes from a concept gap, formula setup, or answer-choice trap.
Ethical and Professional Standards
Standard I(A) Knowledge of the Law
An analyst learns that a recommended trading practice is legal locally but violates the CFA Institute Standards. The analyst should most appropriately:
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Standard I(A) Knowledge of the Law
A member discovers that his team is using a trading strategy that violates securities law. His supervisor refuses to stop it. The member's most appropriate first action is to:
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Standard I(A) Knowledge of the Law
An analyst works in Country X, where selective disclosure is allowed, and serves clients in Country Y, where it is prohibited. The CFA Standards are stricter than Country X. Her most appropriate policy is to follow:
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Standard I(A) Knowledge of the Law
An analyst in Country X serves clients in Country Y. Country X permits trading ahead of client orders if disclosed annually; Country Y prohibits the practice; the CFA Institute Standards require client priority. The analyst's most appropriate course is to:
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Standard I(A) Knowledge of the Law
A junior analyst has reasonable grounds to believe her supervisor is altering client suitability documentation after trades are executed. She confronts the supervisor, who refuses to stop. Local law does NOT require whistleblowing. The analyst's most appropriate next step under the Standards is to:
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