General Securities Sales Supervisor (Series10) Practice Exam

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Study for the General Securities Sales Supervisor (Series10) exam. Prepare with flashcards and multiple-choice questions, each question has hints and explanations. Get ready for your exam!

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According to FINRA supervisory rules, which group is NOT required to undergo annual compliance reviews?

Offices of supervisory jurisdiction
Non-supervisory branch offices
Registered representatives
Registered principals

The correct answer is: Non-supervisory branch offices

The distinction lies in the supervisory requirements set forth by FINRA. Non-supervisory branch offices are not considered supervisory roles within the firm's hierarchy and therefore do not need to participate in annual compliance reviews. These reviews are primarily designed to ensure that supervisory personnel maintain compliance with regulatory standards, which applies directly to supervisory jurisdictions, registered principals, and registered representatives who have supervisory responsibilities over others. In contrast, offices of supervisory jurisdiction oversee compliance and must conduct these reviews to ensure adherence to regulations. Registered representatives and registered principals are involved in sales activities and compliance, and those in supervisory roles are required to participate in yearly assessments to evaluate and enhance adherence to FINRA rules. Hence, the non-supervisory branch offices, lacking direct responsibility for oversight or compliance monitoring, are exempt from the annual review requirement.