Series 9/10 – General Securities Sales Supervisor Practice Exam

1. Supervise Associated Persons and Personnel Management Activities (19%)
   • Verify the Qualifications of Newly Hired Associated Persons
     • Conduct pre-hire investigations.
     • Review and process Form U4 and Form U5.
     • Utilize the Central Registration Depository (CRD).
     • Understand statutory disqualification criteria.
     • Implement fingerprinting procedures.
     • Ensure appropriate registrations (e.g., state, FINRA).
   • Review and Maintain Associated Persons’ Registrations and Disclosures
     • Update Form U4 and Form U5.
     • Manage outside business activities.
     • Monitor personal accounts and private securities transactions.
     • Oversee fiduciary appointments.
     • Track political contributions and activities.
     • Address disciplinary and criminal actions.
     • Manage noncash compensation disclosures.
2. Supervise the Opening and Maintenance of Customer Accounts (34%)
   • Review and Approve Customer Account Documentation
     • Ensure compliance with account opening procedures.
     • Verify customer suitability and risk tolerance.
     • Implement procedures for account transfers.
     • Oversee margin account approvals and maintenance.
   • Monitor and Supervise Customer Account Activities
     • Detect and address unauthorized trading.
     • Identify and manage conflicts of interest.
     • Ensure compliance with anti-money laundering (AML) regulations.
     • Oversee the handling of customer complaints.
3. Supervise Sales Practices and General Trading Activities (36%)
   • Implement Procedures for Sales Practices
     • Enforce suitability requirements.
     • Monitor for excessive trading and churning.
     • Ensure compliance with fair pricing and best execution standards.
   • Supervise Trading Activities
     • Oversee proprietary trading activities.
     • Implement procedures for trading in various securities (e.g., equities, fixed income).
     • Ensure compliance with trading regulations and reporting requirements.
4. Supervise Communications with the Public (11%)
   • Review and Approve Communications
     • Ensure accuracy and compliance with regulatory standards.
     • Monitor for misleading or deceptive statements.
   • Implement Procedures for Communications
     • Establish guidelines for internal and external communications.
     • Train staff on communication policies and procedures.

Part 2: Series 9 – Options Sales Supervisor

This part consists of 55 multiple-choice questions, distributed across four major job functions:

1. Supervise the Opening and Maintenance of Customer Options Accounts (33%)
   • Review and Approve Options Account Documentation
     • Ensure compliance with options account opening procedures.
     • Verify customer suitability for options trading.
     • Implement procedures for options account transfers.
   • Monitor and Supervise Options Account Activities
     • Detect and address unauthorized options trading.
     • Identify and manage conflicts of interest in options trading.
     • Ensure compliance with options trading regulations.
2. Supervise Sales Practices and General Options Trading Activities (35%)
   • Implement Procedures for Options Sales Practices
     • Enforce suitability requirements for options transactions.
     • Monitor for excessive trading and churning in options accounts.
     • Ensure compliance with fair pricing and best execution standards in options trading.
   • Supervise Options Trading Activities
     • Oversee proprietary options trading activities.
     • Implement procedures for trading in various options strategies.
     • Ensure compliance with options trading regulations and reporting requirements.
3. Supervise Options Communications (9%)
   • Review and Approve Options Communications
     • Ensure accuracy and compliance with regulatory standards for options communications.
     • Monitor for misleading or deceptive statements in options communications.
   • Implement Procedures for Options Communications
     • Establish guidelines for internal and external options communications.
     • Train staff on options communication policies and procedures.
4. Supervise Associated Persons and Personnel Management Activities (24%)
   • Recruit, Train, and Supervise Associated Persons
     • Implement hiring practices in compliance with regulatory standards.
     • Provide ongoing training on options products and compliance.
     • Conduct performance evaluations and manage personnel issues.