According to the Standards of Practice Handbook, a member with supervisory responsibilities violates the CFA Institute Standards of Professional Conduct when: A. delegating supervisory duties. B. failing to prevent violations of the law. C. failing to prevent violations of the CFA Code and Standards. D. failing to establish and implement written compliance procedures. I put D but I think the answer is B. The answers aren’t clear. But this doesn’t make sense, as long as you have controls in place to prevent violations of the law employees can still circumvent them, and what it’s your fault because you are the supervisor? Is this right?
i think it’s D too. You should only make every reasonable effort to prevent violations, you can’t have entire control on other employees.
The answer is D actually. Just verified it with someone else… Thanks