Broker-Dealer Agent Supervision

What this video covers

• Why a broker-dealer can be held liable for an agent's violation even without knowledge of the misconduct, and why failure to supervise is strict liability for reasonable procedures
• The difference between an office of supervisory jurisdiction (OSJ) and a non-OSJ branch, and which supervisory titles each location requires
• What written supervisory procedures (WSPs) must cover, and why they must be established, maintained, and enforced rather than merely written
• The communications that require pre-use principal approval (advertising and sales literature) versus those that only need a reasonable risk-based review system (correspondence and internal communications)
• The tiered branch office inspection cycle: OSJs and branches supervising other locations at least annually, non-supervisory branch offices at least every three years
• The firm-wide annual review of the overall supervisory system and business operations
• The most common exam traps test writers layer into supervision fact patterns