Chartered Alternative Investment Analyst Association (CAIA) Practice Exam 2026 - Free CAIA Practice Questions and Study Guide

Jan Hirsh has a personal account with Advisors, Inc. but has not reached the minimum commission level. What does she need to do according to CFA Institute Standards?

No action necessary regarding the account.

Inform her clients verbally about the arrangement.

Report the relationship to her supervisor verbally.

Inform her supervisor in writing about the account.

In accordance with CFA Institute Standards, the requirement for Jan Hirsh to inform her supervisor in writing about her personal account with Advisors, Inc. arises from the need for transparency and adherence to the firm's compliance policies. Notifying her supervisor in writing ensures a formal record of the account, allowing the firm to monitor any potential conflicts of interest and ensure that all employee accounts comply with the company's ethical guidelines. This is particularly important when the employee has not reached the minimum commission level, as it may raise questions regarding the personal trading activities that could affect her professional responsibilities. The written notice also provides a clear, documented trail of communication about her personal investment activities, which is essential for maintaining integrity and accountability within the firm.

Get further explanation with Examzify DeepDiveBeta