Chapter 7 - Policies & Procedures

Question 1

What is the difference between Policy & Procedure

Answer 1

Policy describes a Firm’s Rule

Procedure describes the steps to implement that Policy.

Question 2

What are two essential components of effective implementation:

Answer 2

1 - Training

2 - Education

Question 3

how frequently must Policies & Procedures be updated?

Answer 3

1- reviewed periodically based on established guidelines.

2- May also be prompted by particular events.