What is one of the main functions of the supervisory obligations when a rep sells securities outside their jurisdiction?

One of the main functions of supervisory obligations when a representative sells securities outside their jurisdiction is to ensure compliance with firm policies. Firms are required to have supervisory systems in place that monitor and regulate the activities of their representatives to ensure that they adhere to all relevant laws, regulations, and internal policies. This oversight is crucial for maintaining the integrity of the financial markets and protecting both the firm and its clients from potential fraud or misrepresentation.

By ensuring compliance with firm policies, the supervisory system helps manage risks associated with transactions that involve outside jurisdictions, as these may differ in regulatory requirements. This process involves reviewing the suitability of trades, the credentials of the representative, the regulatory status of the securities involved, and ensuring that the actions taken are in line with the firm's standards and ethics, ultimately contributing to a stable and trustworthy financial environment.