Series 63 practice questioneasySupervision Requirements
Which of the following is LEAST LIKELY to satisfy an Administrator’s expectation for supervision of an IAR under the Uniform Securities Act?
- AA written procedures manual accessible to all staff
- BPeriodic review of client recommendations
- CAnnual independent audits of client accounts✓ Correct answer
- DDesignating a supervisor for all IARs
Explanation
Why C — Annual independent audits of client accounts
The USA does not require independent audits of client accounts as a standard supervisory procedure. The other options are common, expected elements of IAR supervision (USA §411(c)).
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