Regulatory FrameworkQuestion 386 of 398
A newly hired individual will supervise the firm's general securities sales activities and approve new accounts. To act as a supervisor, this person must typically qualify as a:
a.Principal (for example, by passing the Series 24)
b.Representative only (SIE plus Series 7)
c.Registered options trader
d.Municipal advisor representative
Explanation
Individuals who supervise the securities business of a member firm must generally register as principals, such as by passing the Series 24 General Securities Principal exam. Representatives handle sales to customers, while principals manage and supervise those activities and approve certain firm actions. Both must also pass the SIE.
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