FINRA's supervision framework (primarily Rule 3110) requires broker-dealers to establish and maintain a system to supervise activities of associated persons. Written supervisory procedures must cover account opening, suitability review, communications, variable annuity sales, training, and branch inspections.Supervisors perform pre- and post-review of transactions, approve retail communications where required, anddocument exceptions. The rule's design is preventative: strong supervision detects red flags-unsuitable exchanges, missing disclosures, or inconsistent paperwork-before client harm occurs. For insurance-licensed reps, coordination between the broker-dealer and insurance agency ensures consistent oversight across securities and insurance recommendations.

Broker-dealers implement written supervisory procedures, designate principals,review transactions and communications, and conduct branch inspections. For Annuities, supervisors review new business and exchanges, ensure disclosures are delivered, and confirm training. Exceptions and red flags are escalated. Effective Supervision reduces regulatory exposure and keeps messaging, sales practices, andpaperwork aligned with investor-protection standards.