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← Series 79: Section 4
Series 79 practice questionhardSupervision Requirements

During an annual review, a compliance officer finds that a branch manager failed to correct repeated policy violations. What is the most likely regulatory concern?

  1. AThe review process itself was inadequate
  2. BThe violations are immaterial if no customer losses occurred
  3. CThe manager may be liable for supervisory failures regardless of client harm
  4. DBranch managers are never responsible for staff conduct✓ Correct answer
Explanation

Why D — Branch managers are never responsible for staff conduct

Supervisors are always responsible for enforcing policies, regardless of actual client harm. Saying otherwise is a common mistake, so the traps test the candidate's grasp of supervisory accountability.

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