Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Does someone who is reviewing a producing manager under the limited size and resources exception have to be a principal?

April 26, 2017exception limited manager Principal producing Resources reviewing size

0

Posted

Does someone who is reviewing a producing manager under the limited size and resources exception have to be a principal?

1 Answer

0

Posted

Yes. If the firm is so limited in size and resources that there is no qualified person senior to, or otherwise independent of, the producing manager to conduct the producing manager reviews, the firm may rely on Rule 3012’s limited size and resources exception and have the reviews conducted by a principal who is sufficiently knowledgeable of the firm’s SCPs.