Answer: Yes, because she did not take steps to ensure that the violation will not be repeated.

## Explanation **Correct Answer: C** - Yes, because she did not take steps to ensure that the violation will not be repeated. ### Analysis: 1. **Standard IV(C): Responsibilities of Supervisors** - This standard requires that members and candidates with supervisory responsibility make reasonable efforts to detect and prevent violations of applicable laws, rules, regulations, and the Code and Standards by those subject to their supervision or authority. 2. **Key Requirements for Supervisors:** - Establish and implement adequate compliance procedures - Take reasonable steps to detect violations - Take appropriate action once a violation is discovered 3. **Tasha's Actions:** - She wrote and implemented compliance policies (good first step) - She discovered Longtree's violation (detection occurred) - She discussed the issue with Longtree (initial action taken) - **She took no further action** (this is the critical failure) 4. **Why Option C is Correct:** - Once a violation is discovered, supervisors must take steps to ensure the violation will not be repeated - Merely discussing the issue is insufficient - Appropriate actions could include: additional training, increased supervision, disciplinary action, or modifying procedures - By taking no further action, Tasha failed to fulfill her supervisory responsibilities 5. **Why Option A is Incorrect:** - Tasha's failure to take further action constitutes a violation of Standard IV(C) 6. **Why Option B is Incorrect:** - Tasha did detect Longtree's actions (she discussed the issue with him) - The violation is not about failing to detect, but about failing to take adequate follow-up action ### CFA Institute Standards Reference: - **Standard IV(C): Responsibilities of Supervisors** - Members and candidates must make reasonable efforts to ensure that anyone subject to their supervision or authority complies with applicable laws, rules, regulations, and the Code and Standards. - **Guidance:** When a supervisor learns of a violation, they must take prompt action to prevent further violations, which may include limiting the employee's activities, increasing supervision, or placing additional controls on the employee's activities. **Conclusion:** Tasha violated Standard IV(C) by failing to take adequate steps to ensure that Longtree's violation would not be repeated after she discovered it.

Author: LeetQuiz .