The Supervisory System
Chapters in this video
- 0:00 The "reasonably designed" standard: not perfection
- 1:00 The three mandatory supervisory foundations
- 1:59 Delegation traps and the one narrow exception
- 2:55 Why a supervisor cannot supervise themselves
- 3:24 Principal exams: Series 24, 4, 9/10, and 53
- 4:00 OSJ versus branch office: the seven triggers
- 5:40 One principal covering two OSJs: documentation burden
- 6:20 Non-branch exemptions and the 30-day rule
- 7:16 Rapid-fire exam recap
What this video covers
- What "reasonably designed" really means: a thoughtful, implemented system, not a guarantee of zero violations
- The three mandatory foundations every supervisory system must contain: written supervisory procedures (WSPs), designated supervisory personnel, and assignment of each registered person to an appropriately registered supervisor
- Why supervisory duties cannot be delegated to unregistered persons, and the single narrow exception for correspondence and internal-communication review functions
- Why a supervisor cannot supervise their own activities or report to someone they supervise, and when small firms must document an exception
- The four principal-level exams (Series 24, Series 4, Series 9/10, Series 53) and what business activity each supervises
- The seven activities that instantly trigger OSJ status, and why every OSJ must have an on-site registered principal physically present on a regular and routine basis
- The difference between branch offices, OSJs, and non-branch locations, including the 30-business-day exemption
Read the full lesson, free
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