CFA, as a a member of a political group, advocatesless governmental regulation in all aspects of life. The country she works has minimallocal securities laws and does not prohibit insider trading. Chen’s investmentstrategy reflects her policies stated above. That is she follows her country’smandatory legal and regulatory requirement. Which of the following actions byChen would be most consistent with the CFA Institute Standards of ProfessionalConduct?
　　A.Continuingher current investment strategy
　　B.Disclosingher political advocacy to clients
　　C.Following theCFA Institute Standards of Professional Conduct
　　Correct. C
　　Standard I(A): Knowledgeof the Law requires members and candidates to comply with the more strict law,rules, or regulations and follow the highest requirement, which in this casewould be the CFA Institute Standards of Professional Conduct. Standard II(A):Material Nonpublic Information would also apply because members and candidateswho possess material nonpublic information that could affect the value of aninvestment must not act or cause others to act on the information. Disclosurethat she meets local mandatory legal requirements—versus the more strict law,rules, or regulations mandate of the Standards of Professional Conduct—wouldnot excuse the member from following the Standards of Professional Conduct.