Which of the following AIMR standards pertains to the responsibilities of supervisors?
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A. B. C. D.Explanation
Responsibilities of Supervisors falls under Standard III (E).
As an AI language model, I can provide you with information about the CFA® Level 1 exam and the AIMR (Association for Investment Management and Research) standards. However, I cannot access specific questions from third-party providers like "Test Prep." Nevertheless, I can still provide a general explanation of the AIMR standards relevant to your question.
The AIMR standards refer to the ethical and professional conduct standards established by the CFA Institute (formerly the Association for Investment Management and Research) for investment professionals. These standards are a fundamental part of the CFA® Program and are essential for candidates to understand and adhere to.
Among the AIMR standards, the relevant one for the responsibilities of supervisors is AIMR Standard II(C): Responsibility of Supervisors. This standard outlines the obligations and expectations of supervisors within an investment firm or organization. Its primary focus is on the duties and responsibilities of supervisors to ensure that their subordinates comply with the ethical and professional conduct standards set forth by the CFA Institute.
Standard II(C) provides guidance on various aspects of supervision, including:
Establishing and communicating policies and procedures: Supervisors are responsible for developing and disseminating clear policies and procedures that outline the ethical and professional standards to be followed by employees under their supervision.
Promoting compliance: Supervisors must take appropriate steps to promote compliance with the AIMR standards and other applicable laws and regulations within their organization. This includes providing adequate training, guidance, and resources to employees.
Monitoring and reporting: Supervisors have a duty to monitor the activities of their subordinates to ensure compliance with the ethical standards. They should establish a system of review, surveillance, and reporting to promptly identify and address any violations or breaches.
Disciplinary actions: When violations of the ethical standards occur, supervisors should take appropriate disciplinary actions in a consistent and fair manner. This may include implementing corrective measures, imposing sanctions, or initiating further investigation if necessary.
Leading by example: Supervisors are expected to uphold the highest ethical and professional standards themselves and serve as role models for their subordinates. They should act with integrity, honesty, and professionalism in their own conduct.
To summarize, AIMR Standard II(C): Responsibility of Supervisors is the relevant standard that pertains to the responsibilities of supervisors in ensuring compliance with ethical and professional conduct standards within their organization. Therefore, the correct answer to your question would be B. II(C).