General Securities Sales Supervisor (Series10) Practice Exam

Under MSRB Rule G-27, which of the following must a municipal principal approve?

1. Account transactions

2. Trade confirmations

3. Customer complaints

4. New accounts

The correct answer is: Customer complaints

Under MSRB Rule G-27, a municipal principal must approve customer complaints. This requirement stems from the necessity to ensure that all escalated issues involving customers are being reviewed and handled appropriately at a supervisory level. The aim is to maintain compliance with regulations and to protect the interests of customers as well as the integrity of the municipal securities market. The requirement for principal approval of customer complaints helps firms to track and address potential issues or systemic problems effectively. By overseeing complaints, municipal principals can ensure that appropriate actions are taken, investigations are conducted, and that the firm remains transparent and compliant with the rules governing municipal securities. Other aspects such as account transactions, trade confirmations, and new accounts may involve oversight and process but do not carry the same direct supervisory responsibility under rule G-27 as customer complaints do. In the context of principal oversight, ensuring that customer complaints are dealt with properly reflects the supervisory role assigned to municipal principals, highlighting their importance in maintaining compliance and customer relations.