CFA Practice Question

CFA Practice Question

Gayle Jennings is a manager in the securities division. About 15 employees report to her. She is responsible for ensuring that all her subordinates submit a monthly statement of disclosure about their trading activities. Because of the volume of work in her department, the disclosure report is given a low priority and is submitted at the end of the following month instead of by the 10th of the following month (as required by firm policy). Gayle has been notified of this chronic delay and has asked for additional help, which has been promised but is not forthcoming.
A. Gayle has violated Standard IV (C) - Responsibility of Supervisors, as she is responsible for ensuring that the firm's policies are complied with in a timely manner.
B. Gayle has not violated any Standard since she has complied with the disclosure requirements and explained her inability to address the issue in a timely manner.
C. Gayle has violated Standard VI (B) - Priority of Transactions.
Explanation: Gayle is responsible for performing her supervisory functions. If the reports are not sent to the compliance department on time, discovery of employees trading ahead of clients may not detected in a timely manner. Gayle has violated Standard IV (C) - Responsibilities of Supervisors. If Gayle truly believes that she cannot perform her obligations to the employer given her resources, she should consider stepping down from her supervisory role.

User Contributed Comments 2

User Comment
litkastip in another words..."don't take a bite you can't chew"
gyee2012 B/c Gayle assumed responsibility as a supervisor she must hold the company's complaince rules at large or she would be accountable.

Basically she broke her rule as a supervisor duties and is not a good example as a leade
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