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Answer: Establish and enforce a code of ethics for all employees.
**Explanation:** - **Option A** is incorrect because the Standard on Misconduct does not recommend conducting annual background checks on current employees. Instead, it focuses on verifying the character of potential employees to ensure they are eligible to work in the investment industry. - **Option B** is correct. The Standard emphasizes the importance of firms adopting a code of ethics that all employees must adhere to. This practice helps prevent violations of ethical and professional standards. - **Option C** is incorrect because the Standard specifically recommends checking references of potential employees, not clients, to ensure their good character and eligibility for employment in the investment industry.
Author: LeetQuiz Editorial Team
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According to the recommended procedures for compliance with the Standard on misconduct, members should encourage their firms to:
A
Perform annual background checks on all employees.
B
Establish and enforce a code of ethics for all employees.
C
Verify the character of potential clients through reference checks.
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