Which of the following is/are true?

NL is a country with no securities laws. LS is a country that has securities laws that are less strict than the AIMR code of ethics while MS has securities laws that are stricter than the code of ethics.

Which of the following is/are true?

I. A member who lives in NL must always follow the AIMR code.

II. A member who lives in MS is governed by the AIMR code.

III. A member lives in NL but does business in MS. If MS laws apply to her business transactions, she must follow the AIMR code.

IV. A member lives in LS and does business in NL. He must always follow the AIMR code.
A . II and IV only
B . I and IV only
C . I, II, III and IV
D . II and III only

Answer: B

Explanation:

An AIMR member must always adhere to the code of ethics, unless the laws governing his/her behavior are stricter, in which case, the stricter laws must be followed. A member governed by MS must always follow the MS laws since they are stricter. Standard I.