AIt's a system of policies and procedures designed to ensure regulations are being complied with as they should; any gaps identified are closed.
BIt sets out procedures that only brokers and not dealers need to design to ensure supervision is being carried out as it should; any gaps identified are closed.
CIt's a system of rules and regulations designed to ensure supervision is being carried out as it should; any gaps identified are closed with amended or new rules and regulations.
DPolicies and procedures are designed to check and confirm that written supervision procedures are operating effectively; any gaps identified are closed with amended or additional procedures.
✓ Correct answer: D. Policies and procedures are designed to check and confirm that written supervision procedures are operating effectively; any gaps identified are closed with amended or additional procedures.According to FINRA Rule 3120, a supervisory control system is made up of policies and procedures designed to check and confirm that written supervision procedures governing day-to-day operations are effective. Where gaps are found, existing procedures are amended or additional procedures are developed to close the gaps.
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