What is a key supervisory procedure for a FINRA member firm regarding new accounts?

The correct answer emphasizes the importance of ensuring that new accounts are approved prior to any transactions being completed. This supervisory procedure is crucial because it helps maintain compliance with regulatory standards and protects both the firm and its clients. By requiring approval before allowing transactions, the firm can verify the identity of the client, assess the appropriateness of the account for the client's needs, and ensure that all relevant information is gathered and understood. This process minimizes the risk of fraud, reinforces adherence to Know Your Customer (KYC) regulations, and fosters a responsible trading environment.

In contrast, while reviewing security trades and investment correspondence is important for ongoing compliance and proper oversight, it does not specifically address the critical initial steps involved in approving new accounts. Sending client name and address for Customer Identification Program (CIP) verification is part of the initial account setup process, but it does not encapsulate the full supervisory structure needed to ensure an account is properly vetted before any activity. Authorizing the voting of proxies by the firm may be a necessary action later in the client relationship but does not pertain to the initial supervisory procedures that should be in place for opening new accounts.