Exercise
Answer Yes or No—Has Proper Supervision Taken Place?
1. _____ An agent of a broker-dealer commits securities fraud; however, the broker-dealer has an appropriate supervisory system in place.
2. _____ An agent of a broker-dealer has a spotless record on all transactions she has effected, but she has not attended a compliance meeting in the past 18 months.
3. _____ A firm has a set of procedures, each of which follows FINRA and SEC guidelines, yet those procedures have not been put in writing.
Answers
1. Yes. As