Learn the approval logic that Series 22 expects before DPP account opening and sales activity can move forward.
The last step in this function is supervisory approval. Series 22 expects you to understand that the representative does not make the final account-opening judgment alone once the profile, forms, and disclosures are assembled. The firm has to review the record and decide whether the account can move forward under its supervisory procedures.
This matters because DPP sales are sensitive to suitability, documentation, and disclosure quality. The exam often uses this section to test whether the candidate recognizes approval as a real control gate. Customer interest, sophistication, or urgency does not eliminate that gate.
Supervisory approval is usually testing whether the account-opening record is complete enough for the firm to rely on it. At a practical level, the review is asking:
Series 22 often rewards the answer that treats supervision as a checkpoint before activity moves forward, not as a formality after the sale story is already set.
| If the review issue is… | Strongest supervisory response | Common trap |
|---|---|---|
| missing profile information | hold approval until the record is complete | assuming product enthusiasm fills the gap |
| inconsistent forms or signatures | stop and reconcile the documents first | treating paperwork cleanup as post-approval work |
| authority question for entity or fiduciary account | verify authority before approval | assuming the signer’s title alone is enough |
| disclosure delivery is uncertain | resolve the disclosure gap before the account proceeds | focusing only on the customer’s willingness to invest |
| representative pushes for speed | follow the review path anyway | treating time pressure as a reason to weaken controls |
flowchart TD
A["Representative assembles profile, forms, and disclosures"] --> B["Supervisor reviews account-opening record"]
B --> C{"Is the file complete, consistent, and approvable?"}
C -->|"No"| D["Hold, correct, or escalate the issue before activity moves forward"]
C -->|"Yes"| E["Approve under firm procedures and preserve the review record"]
Series 22 may tempt you to think that wealthy, experienced, or repeat DPP investors need less review. The exam usually rejects that shortcut. Supervisory approval still matters because:
The right answer is rarely “skip or lighten approval because this customer already knows what they are doing.”
A representative has gathered most of the documents needed for a DPP account, but the supervisory reviewer sees that part of the customer profile is incomplete. The customer is experienced and wants to invest immediately. What is the best next step?
A. Approve the account because the customer is experienced with DPPs
B. Approve the account if the representative explains the missing detail verbally
C. Hold approval until the missing profile information is completed
D. Skip supervisory review because the customer requested the investment directly
Answer: C.
Series 22 generally favors the answer that protects the review gate. Supervisory approval is a real control step, and incomplete profile information should stop the account from moving forward until the record is complete.