Question

Martin Power heads the research department of a regional brokerage firm, the firms employs many analysts, some of whom are subject to the Code and Standards. Should Martin delegate some of his supervisory duties, which statement best describes his responsibilities under CFA institute code and standards?

Answer 1

Martin Power, while delegating tasks, must ensure the delegated duties are properly discharged and maintain an effective system of supervision.

Step-by-step explanation:

If Martin Power delegates some of his supervisory duties, he remains responsible for ensuring that the delegated duties are properly discharged.

According to the CFA Institute's Code and Standards, a supervisor must exercise reasonable supervision over subordinates. This means that even if certain tasks are delegated, Martin must establish and maintain a system to supervise the activities of those employees effectively.

He should also periodically assess the adequacy of the system and the performance of the individuals to whom tasks were delegated. Failure to ensure effective compliance with the Code and Standards may constitute a breach of his supervisory responsibilities.

He is responsible for periodic assessments of the system and the performance of the delegates in adherence with the CFA Institute's Code and Standards.