Q: An advisor I supervise was recently involved in a disciplinary action for improper mutual fund switching. I’ve now been brought up on a failure to supervise claim. I’m not sure what I could have done differently, but maybe you can give me some guidance? -J. N., Florida
A: FINRA Rule 3110(a) requires each member to "establish and maintain a system to supervise the activities of each associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA rules."
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