Who is considered senior for purposes of Rule 3012?
A. Determination of seniority for purposes of deciding who should conduct a producing manager’s supervisory reviews is a facts and circumstances test. For example, a firm may consider someone to be senior to a producing manager if the person does not report to the producing manager; if the person’s compensation is not determined in whole or part by the producing manager (but who may, nevertheless, be paid on the revenues generated by the producing manager, based on the determination of the person to whom the senior person reports); and if the person has authority to oversee, direct and correct the activities of the producing manager and take all necessary remedial actions, including termination or recommending termination. A person may also be considered senior to a producing manager if that person holds a superior position in the same chain of authority as the producing manager. For example, a firm may have a producing manager reporting to a regional manager who, in turn, reports to a
