Final answer:
Supervisory review of discretionary options accounts in the field of business is typically performed by the compliance department or a designated compliance officer within a brokerage firm.
Step-by-step explanation:
Supervisory review of discretionary options accounts in the field of business is typically performed by the compliance department or a designated compliance officer within a brokerage firm.
This review is necessary to ensure that the investment decisions made by the portfolio manager align with the client's objectives and risk tolerance, and comply with regulatory requirements.
The supervisory review process involves ongoing monitoring of the portfolio manager's activities, including the trading activities, investment strategies, and client communications. It may include reviewing trade tickets, account statements, trade confirmations, and any exceptions or deviations from established guidelines.
The purpose of this review is to protect the interests of investors and maintain the integrity of the financial markets. It helps to prevent fraudulent or unauthorized activities and ensures that clients' investments are being managed in accordance with their best interests and applicable regulations.