EOC # 8.
[question removed by moderator] Q is whether Is Nano’s statement with respect to adoption of the CFA Institute Code of Ethics and Standards of Professional Conduct and the CFA Institute Asset Manager Code of Professional Conduct, respectively, correct?
Nano has supervisory duties at Markoe.
President Markoe seems does not care too much about CFA AMC nor Code of Ethics.
Conclusion:
Nano must reject supervisory duties at Markoe.
I think the answer is correct because CFA Institute Code of Ethics and Standards of Professional Conduc covers individuals and asset manager code applies to firms. That is the answer the question is looking for.
Nano’s statement is incorrect.
The firm can adopt the CFA Institute Code of Ethics and Standards of Professional Conduct. Firms are encouraged to adopt the Code and Standards, as part of their code of ethics - see Reading 1 Pg 10 (Adoption of the Code and Standards)
The firm can also adopt the CFA Institute Asset Manager Code of Professional Conduct. But the individual cannot adopt the Asset Manager Code.
Nano only needs to give up supervisory duties and doesn’t need to quit the firm (and definitely not “do nothing”). Code and Standards apply to individuals and not firms (although firms are “encouraged” to adopt them). However, in order for the individual to carry out “Responsibilities of Supervisors” (standard 4C) the firm should have adopted the Standards (or at least adequate compliance policies even if not the CFA standards) thereby allowing the supervisor to adhere to this standard. Markoe, on the other hand, doesn’t even have adequate policies, let alone CFA standards.