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Answer: Decline in writing to accept supervisory responsibility until adequate compliance procedures are implemented.
**Explanation:** According to **Standard IV(C) - Responsibilities of Supervisors**, if a member or candidate is unable to fulfill supervisory responsibilities due to an inadequate compliance system, they must decline in writing to accept such responsibility until the firm adopts reasonable procedures. This aligns with option B. - **Option A** is incorrect because resignation is not required under this Standard unless there are legal violations, not merely compliance flaws. - **Option C** is incorrect because the Standard mandates ensuring compliance for all employees under supervision, not just Charterholders, and does not address the immediate action required in this scenario.
Author: LeetQuiz Editorial Team
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Cecilia Foster, CFA, has recently assumed the role of Director of Research at Sisyphus Investments (SI), where she supervises a team of analysts. Upon discovering that the firm's compliance system falls short of her expectations, Foster raises the issue with her supervisor, who indicates that improvements will be considered in four months at the start of the next fiscal year. According to the CFA Institute Standards of Professional Conduct, Foster's most appropriate initial action is to:
A
Resign from her new position.
B
Decline in writing to accept supervisory responsibility until adequate compliance procedures are implemented.
C
Implement departmental procedures to ensure compliance among fellow Charterholders.
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