At a minimum, an effective compliance program includes four core requirements.

• A. True
• B. False
• C. At least two
• D. It varies by sponsor

Answer: (B)

An effective compliance program must be built from a comprehensive set of elements that cover prevention, detection, and response across the organization. The framework regulators and oversight bodies commonly reference includes seven core elements: standards and procedures to prevent and detect misconduct; oversight by high-level personnel; training and education; channels for reporting concerns and for investigations; enforcement of discipline; monitoring, internal audits, and periodic reviews; and timely corrective actions plus ongoing improvement. Because four core requirements do not capture all seven essential components, the statement is not correct. While sponsors can tailor programs to their risk profile, the standard baseline emphasizes these seven elements, not just four, which is why the claim is false.