Supervisory Control System
Chapters in this video
- 0:00 Supervisory system (playbook) vs supervisory control system (quality check)
- 0:58 Written supervisory procedures and why execution matters
- 1:54 Day in the life: routing business up for account changes
- 2:50 The new-account acceptance record signer trap
- 3:20 Escalate discrepancies, never improvise alone
- 4:00 Principal review of communications without customer consent
- 4:42 Three required items in the annual report to senior management
- 5:14 Risk-based sampling and no testing of every transaction
- 5:58 Newly approved firm gets no special annual report deadline
- 6:23 Rapid-fire exam recap
What this video covers
- Why the supervisory system builds written supervisory procedures (WSPs) while the supervisory control system checks whether they actually work in practice
- How to route business up, never to yourself, and why a representative never approves their own account changes or discretionary authority
- The specific signer requirement for the general new-account acceptance record: a partner, officer, or manager, not simply any principal
- What goes in the annual report to senior management: testing results, significant exceptions, and amended supervisory procedures
- Why risk-based sampling is permitted and the firm does not need to test every transaction in every office
- Why a newly approved firm gets no special deadline or grace period for its first annual report
- The escalation rule: inform the appropriate supervisor and assist in resolution, never take unilateral action to fix records yourself
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 6 course also includes adaptive practice questions and spaced-repetition flashcards.