Answer-first summary for fast verification
Answer: Statement 1 only
**Explanation:** - **Statement 1** is accurate under **Standard IV(C)**, which mandates that members and candidates must make reasonable efforts to ensure compliance with applicable laws, rules, regulations, and the Code and Standards by those under their supervision. - **Statement 2** is incorrect because **Standard IV(C)** specifies that if a member or candidate cannot fulfill supervisory responsibilities due to a lack of or inadequate compliance procedures, they should formally decline supervisory responsibility until the firm implements reasonable procedures. The CFA Institute Code of Ethics cannot substitute for compliance procedures. Thus, the correct answer is **A**.
Author: LeetQuiz Editorial Team
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According to the CFA Institute Standards, which of the following statements regarding a member in a supervisory role is correct?
Statement 1: The member must take reasonable steps to ensure that individuals under their supervision adhere to the Code and Standards.
Statement 2: The member must implement the CFA Institute Code of Ethics as a temporary measure in the absence of compliance procedures until the firm establishes adequate supervisory protocols.
A
Statement 1 only
B
Statement 2 only
C
Both Statement 1 and Statement 2