Final answer:
A broker working under the supervision of a responsible broker cannot act independently and must follow the guidance and instructions provided. It is important for brokers to adhere to regulations and ethical standards set by regulatory bodies.
Step-by-step explanation:
When a broker works under the supervision of a responsible broker, they typically must follow the guidance and instructions provided by the responsible broker. This means that the broker working under supervision cannot act independently and must seek approval or guidance from the responsible broker.
For example, if a client wants to make a specific investment, the broker working under supervision would typically need to consult with the responsible broker before proceeding. The responsible broker may have specific requirements or guidelines that need to be followed.
This arrangement is in place to ensure that brokers adhere to regulations and ethical standards set by regulatory bodies, such as the Securities and Exchange Commission (SEC). By supervising the actions of brokers, responsible brokers can help protect the interests of clients and uphold the integrity of the financial markets.