Wanda Kirby, CFA, recently joined Allegheny Investments as a senior analyst. Because of her extensive experience in the investments business and knowledge of the Code and Standards, Allegheny’s management asked her to assume supervisory responsibility. Kirby reviewed Allegheny’s existing compliance system and determined that it was inadequate to allow her to clearly discharge her supervisory responsibility. According to CFA Institute Standards, Kirby should: A) agree to accept supervisory responsibility and to develop reasonable procedures to allow her to adequately exercise such responsibility. B) agree to accept supervisory responsibility provided that Allegheny adopts reasonable procedures to allow her to adequately exercise such responsibility. C) decline orally to accept supervisory responsibility until Allegheny adopts reasonable procedures to allow her to adequately exercise such responsibility. D) decline in writing to accept supervisory responsibility until Allegheny adopts reasonable procedures to allow her to adequately exercise such responsibility I donot see how B is different from D? please help
I’ll go with A, it makes more sense to me
b is accept, d is decline. that is an obs difference. c is orally and d is in writing. the answer should be D.
D? B and D are quite different. First of all, you are accepting the position in B while working towards reasonable procedure. In D, you are declining the position until a reasonable procedure is put in place. Secondly, D specifies the response is in writing… seems that CFAI gives preference to responding in writing. What’s right?
D should be the answer. decline in writing to accept supervisory resp…
D. must decline in writing till adequate procedures are adopted.
The answer is D. But B says, “accept…provided…”.which would essentially mean “decline… if not provided” which sounds more like D. Im confused
Whenever you see an answer which talks about inadequate supervisory compliance, – any other answer other than “decline IN WRITING” is WRONG!!!
This question resembles some real LI questions I’ve seen. D is correct, see page 94 of the Standards of Practice Handbook (quoted below). Note that an incorrect response often provided for this sort of question is that the Member/Candidate must quit their position at the firm, which is an extreme example and only expected under certain circumstances. “A member or candidate with supervisory responsibility should bring an inadequate compliance system to the attention of the firm’s senior managers and recommend corrective action. If the member or candidate clearly cannot discharge supervisory responsibilities because of the absence of a compliance system or because of an inadequate compliance system, the member or candidate should decline in writing to accept supervisory responsibility until the firm adopts reasonable procedures to allow them to adequately exercise such responsibility.” - p.94 “If a member or candidate has reasonable grounds to believe that imminent or ongoing client or employer activities are illegal or unethical, the member or candidate must dissociate, or separate, from the activity. In extreme cases, dissociation may require a member or candidate to leave his or her employer. However, there are intermediate steps that members and candidates may take to dissociate from ethical violations of others. The first step should be to attempt to stop the behavior by bringing it to the attention of the employer through a supervisor or the compliance department. Members and candidates may consider directly confronting the person or persons committing the violation. If these attempts are unsuccessful, then members and candidates have a responsibility to step away and dissociate from the activity by taking such steps as removing their name from written reports or recommendations or asking for a different assignment. Inaction combined with continuing association with those involved in illegal or unethical conduct may be construed as participation or assistance in the illegal or unethical conduct.” - p.97
thank you hiredguns, it’s much clearer now
cpk123 Wrote: ------------------------------------------------------- > Whenever you see an answer which talks about > inadequate supervisory compliance, – any other > answer other than “decline IN WRITING” is WRONG!!! LOL…WORD!!!
Wording for B is very tricky but D is correct.