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

Under Standard IV(C), which of the following individuals most likely exercises supervisory responsibility?

A portfolio manager with employees under her control or influence exercises supervisory responsibility, even if none of them holds a CFA credential. Standard IV(C) applies to any investment professional with such influence, regardless of the employees' membership or title, so it is not limited to charterholders or compliance staff.

  1. AA portfolio manager who has employees subject to her control or influence, even if none holds the CFA designationCorrect
  2. BOnly a manager whose direct reports are CFA charterholders or candidates in the CFA Program
  3. COnly a member of the firm's compliance department who has been formally given the title of supervisor

Explanation

The Standard states that 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. The other options wrongly limit supervision to CFA holders or to compliance staff.

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