X was 23 years old at time of offense and out of college one year. Proposed supervisor has 9 years of industry experience and no record. Noted the AWC for failure to register as assistant trader but ascribed violation to confusion as to “clerical capacity”. Firm’s history “not out of the ordinary for a large firm.” Only two incidents at Firm within past four years and none bear directly on ability to effectively supervise.
1. X will sit in close physical proximity to the Proposed Supervisor, on the same OTC desk, in the same location.
2. X will act as a principal on the Firm's OTC desk, carrying out the specified duties as expressed in above in the section entitled "X's Proposed Business Activities."
3. X will have no dealings with public customers of the Sponsoring Firm, nor shall he be authorized to commit any of the Sponsoring Firm's capital.
4. X will not be responsible for servicing accounts or providing investment advice to the Sponsoring Firm's customers.
5. All of X's outgoing correspondence will be approved by the Proposed Supervisor prior to being sent. The Proposed Supervisor will review all incoming correspondence. The Proposed Supervisor will maintain copies of all outgoing and incoming correspondence with his initials, thereby evidencing his review and approval.
6. The Proposed Supervisor will meet with X on a quarterly basis to review his transactions. A log shall be kept by the Firm of these meetings.
7. All complaints pertaining to X, whether verbal or written, will be immediately referred to the Proposed Supervisor for review, and then to the director of compliance. The Proposed Supervisor will prepare a memorandum to the file as to what measures he took to investigate the merits of the complaint and the resolution of the matter. Documents pertaining to these complaints will be kept segregated for ease of review.
8. For the duration of X's statutory disqualification, the Sponsoring Firm must obtain prior approval from Member Regulation if it wishes to change X'sresponsible supervisor from the Proposed Supervisor to another person.