A supervisor provides insufficient training to subordinates on CFA standards.

A supervisor provides insufficient training to subordinates on CFA standards.

• A. Code of Ethics and Standards
• B. Standard III.C Responsibilities of Supervisors
• C. Standard V.B Communication with Clients and Prospective Clients
• D. Standard VI.B Priority of Transactions

Answer: (B)

Supervisors have a duty to ensure that subordinates understand and follow CFA Institute standards. When training on these standards is inadequate, subordinates may unknowingly violate ethical or professional rules, and the supervisor is responsible for that lack of supervision. This is exactly what Standard III.C Responsibilities of Supervisors covers: it requires supervisors to provide appropriate guidance, oversight, and training to ensure staff comply with the CFA standards, and to take action to address any compliance gaps. The other choices touch on related areas but not this specific obligation. The overarching Code of Ethics and Standards sets the general expectations for conduct, but it doesn’t focus on the supervisor’s concrete duty to train and supervise subordinates. The other standards concern how you communicate with clients or how you handle the priority of transactions, which are separate aspects of conduct and do not address internal supervision and training.

Supervisors have a duty to ensure that subordinates understand and follow CFA Institute standards. When training on these standards is inadequate, subordinates may unknowingly violate ethical or professional rules, and the supervisor is responsible for that lack of supervision. This is exactly what Standard III.C Responsibilities of Supervisors covers: it requires supervisors to provide appropriate guidance, oversight, and training to ensure staff comply with the CFA standards, and to take action to address any compliance gaps.

The other choices touch on related areas but not this specific obligation. The overarching Code of Ethics and Standards sets the general expectations for conduct, but it doesn’t focus on the supervisor’s concrete duty to train and supervise subordinates. The other standards concern how you communicate with clients or how you handle the priority of transactions, which are separate aspects of conduct and do not address internal supervision and training.