CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

CFA Institute's members with supervisory responsibility are ______.

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
Correct Answer: II

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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