Series 53: Heightened Supervision

Heightened Supervision

Written supervisory control procedures are required to be especially vigilant with regard to the activities of a producing manager (also branch office manager or sales manager) who is responsible for generating 20% or more of the revenue of the business units supervised by that manager’s supervisor. A business unit comprises all the types of production revenue overseen by a producing manager’s supervisor. The 20% threshold must be calculated on a 12-month rolling basis.

Heightened supervisory procedures must be designed specifically to detect or prevent conflicts of interest that may undermine supervision. Conflicts of interest may arise because of economic, commercial, or financial interests a supervisor has in t