QUESTIONS 1 THROUGH 18 RELATE TO ETHICAL AND PROFESSIONAL STANDARDS.

13. Kim Klausner, CFA, monitors several hundred employees as head of compliance for a large

investment advisory firm. Klausner has always ensured that his company’s compliance program

met or exceeded those of its competitors. Klausner, who is going on a long vacation, has

delegated his supervisory responsibilities to Sue Chang. Klausner informs Chang that her

responsibilities include detecting and preventing violations of any capital market rules and

regulations, and the CFA Institute Code and Standards. Klausner least likely violated the CFA

Institute Standards of Professional Conduct by failing to instruct Chang to also consider:

A.

firm policies.

B.

legal restrictions.

C.

industry standards.