Edwin McNeill, CFA, is a senior trader for Grey Securities. In his monthly
review of his team’s activity, McNeill notices a series of suspicious trades by
one of the traders. McNeill consults his manager, who agrees that these trades
are a potential violation. McNeill informs the trader that her duties will be
restricted while these trades are being investigated and refers the matter to
Grey’s compliance officer for further action. McNeill has:
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A)
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violated Standard IV(C) – Responsibilities of Supervisors by restricting the
trader’s duties before the investigation is completed.
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B)
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violated Standard IV(C) – Responsibilities of Supervisors by failing to
prevent a potential violation.
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C)
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not violated the Standards.
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