What is a broker's fundamental responsibility for the salespersons licensed under them?

A managing or employing broker is legally responsible for supervising the licensees who work under their license. This means establishing policies and procedures, reasonably overseeing the agents' transactions and advertising, ensuring that client funds are handled correctly, and acting to prevent and correct license-law violations. The broker can be disciplined for failing to supervise even if the broker did not personally commit the underlying violation. Effective supervision includes training, reviewing contracts and trust-account activity, and being available to answer questions. This duty of supervision is a defining feature of the broker level and a major theme of the broker exam.