State regulators continue to see an increase in supervisory failures at broker-dealers, according to a review of 236 exams conducted in the first half of this year. In addition to failure to follow written supervisory policies, the top 5 violations involve unsuitability of investments, misleading and/or unmonitored correspondence and e-mail sent to customers, failure to properly maintain customer account information, and failure to conduct proper internal audits. (“Supervision lacking at broker-dealers: NASAA,” by Dan Jamieson, InvestmentNews).