Series 7 practice questionmediumDigital Communications — Supervision
A registered representative wants to use a new social media platform to interact with clients. What is the FIRST step the firm should take before allowing its use?
- AAllow the representative to use the platform on a trial basis.
- BProvide firm-wide training on the platform.
- CObtain approval from the SEC.
- DUpdate the firm's written supervisory procedures to address its use.✓ Correct answer
Explanation
Why D — Update the firm's written supervisory procedures to address its use.
Before approving new electronic communication methods, firms must update their written supervisory procedures to ensure proper monitoring and compliance.
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