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SIE practice questioneasySupervisory Procedures

Who at a broker-dealer is primarily responsible for ensuring that supervisory procedures are followed?

  1. AFINRA directly supervises each representative at every firm
  2. BThe firm's outside legal counsel
  3. CEach branch office manager or designated supervisor✓ Correct answer
  4. DEach registered representative is solely responsible for their own compliance
Explanation

Why C — Each branch office manager or designated supervisor

Under FINRA Rule 3110, firms must assign qualified supervisors who are responsible for overseeing the activities of associated persons in their office or department. Branch office managers and designated supervisors are the primary line of defense for ensuring compliance with firm policies and FINRA rules. While FINRA conducts examinations of firms, day-to-day supervision is the firm's responsibility, delegated to its supervisory personnel.

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