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 long as an appropriate supervisory system and