CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

Barry Call has supervisory responsibility at DGR Brokerage House. Paul Harry, an employee of DGR, has committed an offence against the Code and Standards. What course of action should Barry follow in terms of Standard IV (C) Responsibilities of Supervisors, with respect to this violation?
A. Barry must initiate an investigation within a 90-day period to ascertain the extent of the wrong doing and, pending the outcome of the investigation, Barry should take all steps to ensure that the violation will not be repeated.
B. Barry must immediately initiate an investigation to ascertain the extent of the wrong doing and, pending the outcome of the investigation, Barry should take all steps to ensure that the violation will not be repeated.
C. Barry must immediately initiate an investigation to ascertain the extent of the wrong-doing; no further action is needed.
Explanation: Even if a person is aggressive, there is no excuse not to initiate an investigation. In addition, an investigation is not enough; pending the outcome of the investigation, the supervisor should take all steps to ensure that the violation will not be repeated. The investigation must be initiated immediately; there is no 90-day grace period in which to initiate the investigation.

User Contributed Comments 1

User Comment
gyee2012 This is made to escalate the issue rather delaying the problem from escalating
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