Series 79 practice questionmediumSupervision Requirements
Under FINRA rules, which of the following best demonstrates proper escalation of a compliance concern?
- AIgnoring the concern if it involves a senior executive
- BNotifying the designated supervisory principal according to the firm’s written supervisory procedures✓ Correct answer
- CReporting directly to the SEC without informing internal compliance
- DDiscussing the issue with colleagues over lunch
Explanation
Why B — Notifying the designated supervisory principal according to the firm’s written supervisory procedures
Proper escalation requires following the firm's supervisory chain as described in its WSPs. The trap is bypassing procedures or informal handling, which can expose the firm to regulatory risk.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 477+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Section 4 questions
- Under FINRA Rule 5110, what type of compensation must be disclosed and subject to limitations when participating in a…
- If the SEC obtains disgorgement of ill-gotten gains from a broker-dealer, what is the most accurate description?
- Which of the following is a prohibited practice under the Global Research Analyst Settlement and related FINRA rules?
- Under Exchange Act Rules 17a-3 and 17a-4, how long must a broker-dealer retain customer account records after account…