Howard Klein, CFA

Howard Klein, CFA, supervises a group of research analysts, none of whom is a CFA charterholder or CFA candidate. He has attempted on several occasions to get his firm to adopt a compliance system to ensure that applicable laws and regulations are followed. The firm’s principals, however, have never adopted his recommendations. According to CFA Institute Standards of Professional Conduct, Klein at this point: A. should decline in writing to accept supervisory responsibilty until his firm adopts reasonable compliance procedures. B. needs to take no action because the employees are not CFA charterholders or CFA candidates. C. needs to take no action because he has fulfilled his obligations under CFA Institute standards D. must resign from the company and document in writing his reason for doing so. What do you think is the right answer and why?

A if they dont adopt a better compliance system after that he may have to seek legal advice and weigh his options of leaving the empoyer entirely (in an extreme case)



Yep A, I agree with getterdone

Yeah, A is the right answer.

A is correct.

…how come I was able to get the correct answer without reading the text? Amazing!

A. I’ve seen this question about 50 times now in various forms. Almost as boring as the 'adjusting someone else’s model and taking credit" line of questions.

No I really meant just reading the choices told me it was A! I do that sometimes to see if the answer is obvious, and it works sometimes.

Dreary, do you always read the answers first before reading the question? Do you find that it helps you answer the question more quickly that way?