Welcome to Broker-Dealer Supervision and Control, where a firm builds the safeguards that separate duties, document oversight, and keep customer obligations moving through a disruption.
Exam Weight: 6 of 15 in Function 2 (12% of exam)
What You'll Learn
In this unit, you'll cover:
- Key Controls and Segregation of Duties: How firms divide responsibilities, limit information flow, and restrict physical and systems access.
- Written Supervisory Procedures: How written procedures, testing, annual reporting, meetings, and certification support an effective supervisory system.
- Business Continuity Plan: How a written disruption plan is maintained and disclosed to customers.
Why This Matters
Operations professionals work inside the control structure that prevents errors, conflicts, and unauthorized access. The exam often asks which control addresses a particular risk, whether a firm has documented and tested its supervisory process, and what customers must receive when business continuity is at issue.
Let's start with the controls that divide responsibility and limit access before a problem develops.