Supervisory Duties Under CFA Ethics

Medium Cfa Institute Code And Standards Employer Duties - Supervision

Maria is a senior compliance officer at a large investment management firm. Recently, she observed that one of her junior analysts, who reports to her, has been engaging in questionable trading practices that may violate the firm's code of ethics. Maria understands the importance of her duty to supervise her team effectively. As part of the firm's policies, she is responsible for ensuring that her subordinates adhere to ethical standards and compliance requirements.

Which of the following actions would best demonstrate Maria's commitment to her supervisory duties under the CFA Institute Code of Ethics and Standards of Professional Conduct?

Conduct a private meeting with the junior analyst to discuss the observed behaviors without documenting the meeting.

Report the junior analyst's activities to the compliance department and ensure that those activities are formally documented.

Ignore the situation since the junior analyst is performing well based on client feedback.

Hint

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