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Basic Question 1 of 6
CFA Institute's members with supervisory responsibility are ______.
II. expected to establish and implement written compliance procedures about applicable statutes, regulations, and provisions of CFA Institute's Code and Standards
III. in compliance with CFA Institute's Standards after warning an offending employee to stop violating the applicable statutes, regulations, and provisions of CFA Institute's Code and Standards
IV. expected to evaluate personally the conduct of their employees concerning applicable statutes, regulations, and provisions of CFA Institute's Code and Standards on a continuing basis regardless of how many employees they supervise
I. not expected to prevent violations of laws, rules, and regulations by non-CFA-Institute member employees
II. expected to establish and implement written compliance procedures about applicable statutes, regulations, and provisions of CFA Institute's Code and Standards
III. in compliance with CFA Institute's Standards after warning an offending employee to stop violating the applicable statutes, regulations, and provisions of CFA Institute's Code and Standards
IV. expected to evaluate personally the conduct of their employees concerning applicable statutes, regulations, and provisions of CFA Institute's Code and Standards on a continuing basis regardless of how many employees they supervise
User Contributed Comments 10
| User | Comment |
|---|---|
| kaplan | Got this wrong, III is unclear and IV is not reasonable as I would be sufficient |
| sharon | III is clear since he should be compliance 'before' things happened. similar example is provided at 3rd example in page 13. IV: a supervisor is not required to personally evaluate each member of his team(if his team is large he can delegate some of the duties) but the ultimate responsibility is still his. |
| george2006 | III is wrong because simple warning offending employee does not go far enough to be in compliance with CFA Institute's standards. |
| StanleyMo | i pick IV was wrong, most likely due to "expected to evaluate personally the conduct of their employees". A manager cannot relaly "personally" evaluate of the employee conduct. |
| alyl21 | IV is wrong because you are not expected to review personally. As quoted, you should be responsible no matter how many CFA members you have under you. |
| rethan | You are not expected to personally review |
| Shalva | Yep, it's easy to imagine situations, where it would be next to impossible to conduct personal review. Your obligation is to establish, implement, periodically review and update procedures. |
| dblueroom | III is clear, simple warning is not sufficient, must monitor the wrongdoer's activities. Also, II should be more appropriate for compliance officer vs. any supervisor. Lastly, a supervisor is definitely responsibly for ALL employees under supervision, but could delegate some supervisory duties to others. |
| gerdvar | I think you should clarify "personally" doesn't refer to private or personal life, but rather to a manager personally (as by just himself) all employees individually |
| MapherRdz | IV was wrong because a member can delegate this job when he/she has too many employees, so it wouldnt be personally. But the member MUST not forget that he/she has this responsability. |
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Learning Outcome Statements
demonstrate the application of the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity
recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct
identify conduct that conforms to the Code and Standards and conduct that violates the Code and Standards
CFA® 2024 Level I Curriculum, Volume 6, Module 3.