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Basic Question 4 of 6
Tessa Dell has supervisory responsibility at GFR Brokerage. Due to extreme pressures, Tessa delegated all of her supervisory responsibility to David Form. David is an extremely lazy employee and readily accepts the increased paycheque but puts no work at all into his new supervisory responsibility.
II. No, Tessa delegated the responsibility to David.
III. No, but David has violated Standard IV (C) Responsibilities of Supervisors.
IV. Yes, but David has also violated Standard IV (C) Responsibilities of Supervisors.
John Lart, an employee of the firm, commits a violation of the Code and Standards that should have been picked up by David. Has Tessa violated Standard IV (C) Responsibilities of Supervisors, as a result of the violation by John?
I. Yes, even though Tessa delegated her responsibility for supervision she is still ultimately responsible for the overall supervisory function.
II. No, Tessa delegated the responsibility to David.
III. No, but David has violated Standard IV (C) Responsibilities of Supervisors.
IV. Yes, but David has also violated Standard IV (C) Responsibilities of Supervisors.
User Contributed Comments 13
| User | Comment |
|---|---|
| snider | David is not a supervisor although he was given some supervisory responsibility. |
| szipolyozo | Does the code define what a supervisor is? The summary of the notes refers to persons with "supervisory rsponsibility". |
| mtcfa | I is clearly the best answer and IV is probably wrong because the responsibility ultimately rests with Tessa. Moreover, the question never indicates that Daivd is subject to CFA Standards. |
| mcfraz | David can violate the CFA Standards even if he is not subject to them. David clearly has supervisory responsibility since he has received a corresponding pay increase. I and IV. |
| valeris | Agree with mcrfaz. Increased paycheck means that he has responsibility as well. |
| Khadria | I and IV should be the right answer. David has assumed supervisory responsibilities. Moreover, the question deosn't mention if Tessa or David (or both) are CFA. So if Tessa is at fault, so is David. |
| thekapila | I and IV are correct. One who is taking the supervisor responsibility is responsible for uplift or downfall of the conduct. |
| epizi | I think IV is a better answer since it includes I as well |
| epiziL2 | If David gets addition on his pay packet then it is certain that he has some reasons established in the company as a supervisor...haha assistant supervisor... This is funny Huh |
| gill15 | These shouldn't be violations of the standard. I dont understand. Every topic in the book starts with A member or Candidate should or should not....blah blah... both these guys arent mentioned as part of the CFA program? How can you violate a standard of a program when you're not apart of the program? |
| hmichta | I follow gill15. Furthermore, I don't get why a CFA-member has no supervisory duties over non-members (as in one of the other questions for this LOS), whereas a non-member does have to comply with the supervisory duties imposed by the CFA? |
| quanttrader | supervisor and he who is delegated supervisory responsibilites are both responsible |
| johntan1979 | Good luck to those who keep questioning AnalystNotes' accuracy and authority. Maybe you should start your own website because if you are good enough, you don't even need to be here. |
I used your notes and passed ... highly recommended!
Lauren
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® 2025 Level I Curriculum, Volume 6, Module 3.