Ethical and Professional Standards Q54

54Ratti Sonali, a Level III candidate, works as a trader at Rupali Investments. While working on trades for high net-worth clients, she notices a decline in the portfolio value due to certain investments made by the portfolio manager. She informs her supervisor Ashok Rajan who tells her not to concern herself with the portfolio manager‟s performance. Sonali then speaks to the compliance officer who tells her that the high net worth client portfolio is successful and the portfolio manager is very competent. The Standard least likely violated is:

Option : B
Explanation : Standards IV(A) Loyalty and IV(C) Responsibility of Supervisors have been violated since both the supervisor and compliance officer did not investigate Sonali’s concerns. There is no evidence of misrepresentation.

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