New York, NY securities attorney Jenice L. Malecki talks about what evidence is necessary to prove a failure to supervise claim. She notes that in cases of failure to supervise, the focus is often on exception reports—records prepared by supervisory and compliance professionals reviewing accounts. The strongest failure-to-supervise cases typically reveal a lack of such documentation, indicating that no one was actively monitoring the conduct of brokers, traders, or other individuals involved in wrongdoing. Key considerations include the frequency of branch audits and examinations, how often accounts were discussed with supervisors or compliance personnel, and the policies, procedures, and training in place to prevent misconduct. She emphasizes that both the presence of inadequate policies and the absence of proper reporting can be critical in identifying and establishing supervisory failures.