- CFA Exams
- CFA Level I Exam
- Topic 10. Ethical and Professional Standards
- Learning Module 3. Guidance for Standards I-VII
- Subject 14. Standard IV (C) Responsibilities of Supervisors
CFA Practice Question
Once a supervisor learns that an employee may have violated the Code and Standards, a supervisor should ______.
II. rely on the employee's promises that the wrongdoing will not reoccur
III. report the misconduct up the chain of command
IV. warn the employee to cease the activity
V. initiate an investigation to ascertain the extent of the wrongdoing
VI. take steps to ensure the violations will not be repeated, pending the outcome of the investigation
I. rely on the employee's statements about the extent of the violation
II. rely on the employee's promises that the wrongdoing will not reoccur
III. report the misconduct up the chain of command
IV. warn the employee to cease the activity
V. initiate an investigation to ascertain the extent of the wrongdoing
VI. take steps to ensure the violations will not be repeated, pending the outcome of the investigation
Correct Answer: V and VI
I, II, III and IV are not enough.
User Contributed Comments 10
| User | Comment |
|---|---|
| danlan2 | Should IV be done before V and VI? |
| Slothrop | Why aren't III and IV done also, even if one needs to do V and VI? |
| Charlie | "may have violated" does not necessarily mean the employee has violated the standards. Therefore you cannot warn the employee. You need to investigate first. IV should not be chosen. III: you cannot report anything to your boss. You should try to resolve the issue yourself as it's your responsibility. |
| rethan | Good explanaion Charlie. Thanks |
| Shalva | Really good question. It shows that every word has utmost importance in these tests. |
| dblueroom | good one charlie. |
| auhjpps | Charlie you are the man |
| nayagan | agree Shalva, thanks charlie! |
| johntan1979 | III is encouraged, but not required. |
| isalya | May be III would be the case if told to report a potential misconduct |