What type of supervision is required for producing managers under Rule 3012?
A. Rule 3012 specifically requires firms to review and supervise the customer account activity conducted by the firms’ producing managers. A firm should perform these reviews and supervision on the same day-to-day basis that it uses to supervise and review the rest of the firm’s production. Such reviews must be conducted by someone who is either senior to or otherwise independent of the producing manager under review. Unless supervision is conducted by a person who is otherwise independent of the producing manager, Rule 3012 requires a member to have procedures that provide heightened supervision over the activities of its producing managers who are responsible for generating 20 percent or more of the revenue of the business units supervised by their supervisors over the course of a rolling, 12-month period.
