Question of the Week – Ethical and Professional Standards

Question

Joyce Price issues weekly investment reports.
Joyce looks for trends and commonalities within the research community. She
then presents the findings as her own research and doesn't cite any sources.
Joyce gives them to her boss, Soojung Yu, CFA. Soojung peer-reviews the reports
and does not mention anything about citing sources. Has Soojung most
likely violated the
Standards?Yes, regardless of whether Joyce if a CFA Member, Charterholder, or 
CandidateYes, if Joyce is a CFA Member, Charterholder, or CandidateNo

AdaptPrep · Answer

The Standards which apply are:

Misrepresentation.
Members and Candidates must not knowingly make any misrepresentations relating
to investment analysis, recommendations, actions, or other professional
activities.

Responsibilities
of Supervisors. Members and Candidates must make reasonable efforts to detect
and prevent violations of applicable laws, rules, regulations, and the Code and
Standards by anyone subject to their supervision or authority.

Soojung is responsible to make reasonable
efforts to prevent
Joyce from violating the Standards. If Joyce isn't a CFA Member/Charterholder/Candidate,
Joyce isn't responsible for fulfilling the Standards, but Soojung is still responsible
as a supervisor.