Supervisory responsibility
Authority over others' conduct, whatever the title. Standard IV(C) requires reasonable efforts to ensure those supervised comply; without adequate compliance procedures, the role should be declined in writing.
Where you will meet it
Supervisory responsibility appears in 2 learning outcomes on the CFA syllabus. A few of them:
- Put the Responsibilities of Supervisors standard, IV(C), into practice
“Members with supervisory responsibility must make reasonable efforts to prevent and detect violations by those subject to their supervision.”
- Propose practices and procedures that stop breaches of the ethics Code and the Standards of Professional Conduct before they occur
“If procedures are inadequate, the supervisor should raise it with senior management and recommend corrective action, and if clearly unable to supervise properly without them, should decline supervisory responsibility in writing until reasonable procedures exist.”
See also
Practise it
Practise supervisory responsibility until it is automatic: questions that explain every wrong option.
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