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← Series 63: Regulation of Investment Advisers
Series 63 practice questionmediumSupervision — Responsibility

If an IAR at William Blair violates state securities laws, which party is PRIMARILY responsible for ensuring compliance under the USA?

  1. AThe firm’s designated supervisor✓ Correct answer
  2. BThe state Administrator
  3. CThe IAR’s immediate supervisor only
  4. DThe IAR’s client
Explanation

Why A — The firm’s designated supervisor

The designated supervisor (per the firm’s written policies) bears primary responsibility for supervision and compliance (USA §411(c)). Administrator enforces, not supervises; C and D are incorrect.

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