Rodney Rodrigues, CFA, is responsible for identifying professionals to manage specific asset classes for his firm. In selecting external advisers or subadvisers, Rodrigues reviews the adviser’s investment process, established code of ethics, the quality of the published return information, and the compliance and integrated control framework of the organization. In completing his review, Rodrigues most likely violated the CFA Institute Standards of Professional Conduct with regards to his due diligence on:
- adherence to strategy.
- performance measures.
- internal control procedures.
I think it is 1. adherence to strategy bcz it is no where stated that the manger’s strategy is in line with firm’s expectation and procedures.
please share the solution
I THINK THE ANSWER SHOULD BE OPTION B BECAUSE IT IS IMPORTANT FOR THE APPOINTEE TO CHECK THE PAST PERFORMANCE OF THE FUND MANAGER THEY ARE APPOINTING BEFORE THE APPOINT THEM AS THAT WILL ALSO DETERMINE HOW SUITABLE ARE THEY FOR THE FUND MANAGEMENT AND THE FACT THAAT WILL THEY BE ABLE TO PROVIDE THE DESIRED RETURN TO THE FUND INVESTORS. WHEREAS, IF WE CONSIDER OPTION A THERE IS NOWHERE MENTIONED THAT THE MANAGER THAT WAS APPOINTED WAS NOT ADHERING TO THE FUND STRATEGY AND STILL THEY APPOINTED HIM