Members should enforce a system of supervisory control policies and procedures that
- Test and verify that the supervisory procedures are reasonably designed with respect to the member’s activities
- Create additional or amend supervisory procedure the need is identified through testing and verification
All supervisory control policies must include:
- Procedures that are reasonably designed to review and supervise the customer account activity conducted by the member’s branch office managers, sales managers, regional or district sales managers, or any person performing a similar supervisory function.
- Procedures that are reasonably designed to review and monitor all transmittals of funds or securities from customers to third party accounts, customer changes of address and the validation of such changes of address, and customer changes of investment objectives and the validation of such changes of investment objectives.