Section 645F.325 - Supervision of associated licensees1. An independent licensee shall exercise reasonable and adequate supervision over the activities of the associated licensees, if any, who are employed by or otherwise associated with the independent licensee, including, without limitation, by establishing a system to review, oversee and inspect the activities of the associated licensees.2. In determining whether an independent licensee has maintained reasonable and adequate supervision of an associated licensee, the Commissioner will consider whether: (a) The independent licensee has made a reasonable effort to investigate the background and experience of a prospective associated licensee and hire only such associated licensees whose background and experience indicate that they are trustworthy and competent to conduct the business of a covered service provider, foreclosure consultant or loan modification consultant, as applicable;(b) The independent licensee has adopted and followed policies and procedures, written or oral, relating to the supervision and training of associated licensees;(c) The associated licensee has followed the policies and procedures of the independent licensee, written or oral, governing the activities of the associated licensee;(d) The independent licensee has established and followed a system of review for compliance with the written or oral policies and procedures established by the independent licensee;(e) The policies and procedures of the independent licensee require regular review of the work of the associated licensee, including, without limitation, communications between the associated licensee and other parties to a transaction;(f) The independent licensee reviewed the work of the associated licensee in the case under examination by the Commissioner;(g) The policies and procedures of the independent licensee include, without limitation, training in the requirements of the Nevada Covered Service Provider Regulations and NRS 645F.300 to 645F.450, inclusive;(h) The independent licensee makes copies of the Nevada Covered Service Provider Regulations and chapter 645F of NRS available to the associated licensee;(i) The policies and procedures of the independent licensee include, without limitation, a provision for continuing education for associated licensees;(j) The licensee or the applicable qualified employee of the licensee spends a sufficient amount of time in the office where the associated licensee is working;(k) The independent licensee has received or acted on previous reports of alleged misconduct by the associated licensee;(l) The independent licensee has reviewed the handling by the associated licensee of any fee, deposit or money paid to the independent licensee or an associated licensee who is employed by or otherwise associated with the independent licensee, or held in trust by the independent licensee or an associated licensee who is employed by or otherwise associated with the independent licensee, pursuant to the Nevada Covered Service Provider Regulations or chapter 645F of NRS; and(m) The independent licensee's review of the previous work of the associated licensee would have disclosed a problem with the conduct or issue being examined by the Commissioner.3. The Commissioner will allow an independent licensee to take into consideration the total number of associated licensees who are employed by or otherwise associated with the independent licensee when the independent licensee determines the form and extent of the policies and procedures for those associated licensees and the system to review, oversee and inspect the activities of those associated licensees.Nev. Admin. Code § 645F.325
; A by R120-15, effective upon the later of 1/1/2016 or the date this regulation is filed with the Secretary of State.Added to NAC by Comm'r of Mortgage Lending by R052-09, eff. 8-25-2009