Supervisory Procedures and Violations

Supervisory Procedures and Violations

Prev Question Next Question

Question

Standard III (E) - Responsibilities of Supervisors points out that when violations do occur, ________ procedures may be inadequate.

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

A

If a member has adopted reasonable procedures and taken steps to institute an effective compliance program, then the member may not be in violation of

Standard III (E). The fact that violations do occur may indicate, however, that the compliance procedures are inadequate. Furthermore, a member may be in violation of Standard III (E) if he or she knows that the procedures designed to detect and prevent violations are not being followed.