A member fails to supervise a subordinate's compliance with CFA standards.

• A. Standard V.B Communication with Clients and Prospective Clients
• B. Code of Ethics and Standards
• C. Standard VI.B Priority of Transactions
• D. Standard III.C Responsibilities of Supervisors

Answer: (D)

Supervisors have an obligation to oversee the actions of those under them to ensure adherence to the CFA Institute’s Code and Standards. When a member fails to supervise a subordinate’s compliance, they are not fulfilling this duty to monitor, guide, and enforce ethical behavior within their team. That obligation is specifically codified in Standards on the Responsibilities of Supervisors, which requires supervisors to take reasonable steps to prevent violations, provide appropriate oversight and training, and address any noncompliance. The other options address different topics—how to communicate with clients, the broad Code and Standards as a whole, or the priority of personal trades—not the supervisory duty to ensure subordinates comply.