08CMV4-Q4 Kim Li, CFA, is a portfolio manager for an investment advisory firm. Li delegates some of her supervisory duties to Janet Marshall, CFA, after educating Marshall on methods to prevent and detect violations of the firm’s compliance procedures. Despite these efforts, Li discovers that an employee reporting to Marshall may have violated the law. According to the Standards of Practice Handbook, Li’s initial course of action must be to: A. suspend the employee. B. suspend Marshall from her supervisory duties. C. initiate an investigation to determine the extent of the wrongdoing. D. demand that the employee involved provide assurances that the activity will not be repeated. ---------------------------------------------- C standard IV( C) responsibility of supervisors. Since the employee may have violated the law,not confirm yet. The investigation is porper action.
I would argue that © is incomplete and needs to also state that Li must take actions to restrict the employees actions until the investigation is complete, as well as removing Marshall from supervisory duties until the alleged issue is clear. I’ve seen countless Schweser Ethics questions that are similar in nature that have answers reflecting the same tones as my addition above. I believe their questions are more representative to what you’ll see on the exam. I’m not sure where you got these questions from (i looks liked you’ve recently posted many), but they are pretty lousy and might even be a disservice to your studying…
Char-Lee Wrote: ------------------------------------------------------- > I’m not sure where you got these questions from (i > looks liked you’ve recently posted many), but they > are pretty lousy and might even be a disservice to > your studying… -------------------------------------------------------------- yes, Char-Lee, i agree with you on the analyse of Q. Yes, these Qs are lousy,dirty, from some blackheart greedy group. however, I have to play with them for a while. will you sit in Jun/08 exam? which level?