Associated Persons and Personnel Management

The final Series 4 chapter turns to the people side of options supervision. The options principal has to vet newly hired associated persons, maintain registrations and disclosures, preserve market and product knowledge, and supervise conduct involving customers and other market professionals. This is the capstone because the firm can only supervise options well if the people in the system are qualified and controlled.

Read this chapter as the personnel-governance layer. Start with hiring and registration, then move through continuing obligations, product knowledge, and conduct supervision.

In this section

• Hiring Qualifications and Statutory Disqualification
  Review pre-hire review, registration history, and statutory-disqualification screening for Series 4 personnel supervision.
• Registrations, Disclosures, and Heightened Supervision
  Learn how Series 4 tests U4/U5 maintenance, CE, OBA, PST, and heightened-supervision obligations for associated persons.
• Marketplace Knowledge and Options Product Awareness
  Review the trading-rotation, market-participant, order-type, and options-product knowledge that a Series 4 principal must supervise.
• Conduct Supervision and Customer Protection
  Learn how Series 4 tests supervision of associated-person conduct, noncash compensation, customer-asset protection, and dealings with professionals.