Series 30 lesson on discretionary-account authorization, supervision, and review.
On this page
This is a narrow lane, but Series 30 uses it to check whether the branch manager understands how authority changes the control requirement.
What this part is really testing
whether discretionary authority is real, documented, and supervised
whether review intensity matches the account authority granted
Common traps
assuming informal customer consent is enough
treating discretionary review as identical to ordinary account review
Sample Exam Question
A representative begins making trading decisions in a customer account based on verbal conversations but the file does not support a properly documented discretionary arrangement. What is the strongest Series 30 issue?
A. The branch has a discretionary-account authorization and supervision problem B. The issue is only a marketing-approval problem C. No issue exists if the account performed well D. The issue matters only for institutional accounts
Answer: A
The exam is testing whether the branch manager recognises that discretion changes the required authorization and supervision structure.