Senior Manager's Responsibility for Analyst Supervision

Very Hard Cfa Institute Code And Standards Employer Duties - Supervision

In a financial firm, a senior manager is responsible for overseeing a group of investment analysts. During a quarterly review, the manager discovers that one of the analysts has been making recommendations based on outdated research reports that were improperly vetted. The manager has received several complaints regarding the quality of analysis provided by this analyst. According to the CFA Institute Code of Ethics and Standards of Professional Conduct, particularly regarding the duty of supervision, how should the senior manager proceed in this situation?

The senior manager should immediately terminate the analyst's employment without conducting further investigation.

The senior manager should implement a structured training program for the analyst while also increasing oversight for future recommendations.

The senior manager can do nothing if the alternative analysis by others appears sound.

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