Liz Hurley is an investment advisor who has recently started advising a client, Zeta, regarding investment decisions. Zeta lives in Imphal, where investment laws are quite lax, almost non- existent. Hurley is domiciled in Britania, where investment laws clearly specify that the laws governing finance professionals in any given case are the laws that govern their clients. Britania laws, in general, are far stricter than the AIMR code of ethics. In her dealings with Zeta, Hurley must follow

Liz Hurley is an investment advisor who has recently started advising a client, Zeta, regarding investment decisions. Zeta lives in Imphal, where investment laws are quite lax, almost non- existent. Hurley is domiciled in Britania, where investment laws clearly specify that the laws governing finance professionals in any given case are the laws that govern their clients. Britania laws, in general, are far stricter than the AIMR code of ethics. In her dealings with Zeta, Hurley must follow
A . Imphal’s laws.
B . Britania’s laws.
C . AIMR’s code of ethics.
D . a combination of Britania’s laws and AIMR code which results in a stricter set of laws.

View Answer

Answer: C

Explanation:

In her dealings with Zeta, Hurley is governed by Imphal’s laws, as specified by Britania’s laws. Since Imphal laws are almost non- existent, the code of ethics sets a stricter standard and hence, as an AIMR member, Hurley must follow the AIMR code. Standard I.