CFAI Ethics Question cts, previous, receives

RobertA

Which of the following statements regarding supervisory responsibility is/are CORRECT under the Code and Standards:
I. CFA Institute members exercise reasonable supervision by establishing and implementing written compliance procedures.
II. Once compliance procedures are established, CFA Institute members must take reasonable steps to ensure that they are disseminated and enforced.
III. Misconduct by a member’s subordinate automatically results in a violation of the Code and Standards by the member for failing to properly supervise the employee.
a) I only.
b) I, II, and III.
c) II and III.
d) I and II.

RoastBeef

d) I and II.

transferpricing

b) I, II, and III.

tikfed

good call…its D

onelife1

The supervisor only needs to supervise the employer under applicable compliance standards. If the employee steps out of line, it is not a fault of the supervisor. The supervisor must follow up and investigate and reprimand such employee though.

NakedPuts00

D
The supervisor is expected to use reasonable measures of compliance monitoring and enforcing. Reasonable being the key word.