General Securities Sales Supervisor (Series10) Practice Exam

Which of the following entities must approve a research report before it's distributed?

1. FINRA

2. Supervisory Analyst

3. State Insurance Commission

4. None of the above

The correct answer is: Supervisory Analyst

A research report must be approved by a Supervisory Analyst before it can be distributed. This requirement ensures that the report adheres to regulatory standards and contains accurate, unbiased information. The Supervisory Analyst is responsible for reviewing the research to ensure it meets compliance regulations, thereby protecting investors from unsubstantiated claims and potential conflicts of interest. While several regulatory bodies set general guidelines for research reports, such as FINRA providing overarching rules for firms, they do not directly approve individual reports. The State Insurance Commission's role is not relevant in the context of securities research reports. Therefore, the involvement of a Supervisory Analyst is key in the process of reviewing and approving research reports prior to distribution.