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CFA Level I · CFA Level I Exam · Guidance for Standard IV: Duties to Employers

Under Standard IV(C), which individual most likely exercises supervisory responsibility?

The portfolio manager exercises supervisory responsibility. Standard IV(C) applies to any investment professional with employees subject to control or influence, regardless of whether those employees hold CFA membership, the charter, or candidacy. Someone with no one under their authority has no such duty.

  1. AA CFA charterholder who manages only her own personal account
  2. BA portfolio manager with analysts subject to his control or influence, whether or not they are CFA membersCorrect
  3. CA CFA Institute member who is a peer of a colleague at the same level and has no authority over that colleague

Explanation

The guidance says any investment professional who has employees subject to her or his control or influence exercises supervisory responsibility, whether or not those employees are CFA Institute members, charterholders or candidates. A person with no one under their authority has no supervisory responsibility.

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