If an IAR at William Blair makes a large, unsuitable recommendation to a senior client, but the supervisor can show they maintained adequate written procedures and followed up on red flags, what is the MOST likely outcome under the USA?

1. AThe firm will always be held liable for the IAR's actions.
2. BThe supervisor will not be held liable if they met the USA’s supervision standards.✓ Correct answer
3. CThe supervisor is liable simply by virtue of position.
4. DThe client is responsible since they approved the recommendation.

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