Series 11 - Registered Sales Assistant

Series 11 - Registered Sales AssistantSeries 11 - Registered Sales AssistantThe FINRA Series 11 exam is also known as the Assistant Representative-Order Processing Examination. Passing it qualifies a brokeragesales assistant to take and enter unsolicited client orders on behalf of a financial advisor, and to give current securities price quotations. An unsolicited order to buy or sell securities is one made by the client on his or her own initiative, without recommendations, prompting or suggestion from an employee of the financial services firm accepting the order for processing. Higher Standards at Larger Firms The Series 11 exam is, essentially, a highly truncated and simplified version of the equivalent parts of the Series 7 exam. Note, however, that the largest retail brokerage firms tend to hold their registered sales assistants to a much higher standard of knowledge, requiring them to pass both the Series 7 and Series 66 exams, the same tests that their financial advisors must pass. Restrictions on Series 11 Registrants Series 11 registered sales assistants must adhere to unterstellung restrictions on their work activity They must be physically present on the premises of their member firm when accepting and processing unsolicited client orders or when giving price quotations.They must be under the direct supervision of an appropriately registered principal.They may bedrngnis offer investment advice or opinions.They may not make recommendations.They may not enter orders on behalf of the member firm itself.They may not accept or open new accounts.They may not pre-qualify existing clients.They may not accept orders for municipal securities or direct participation programs. They may not receive extra direct or indirect compensation for the number or size of the transactions that they process. Advantages of Registered Sales Assistants A Series 11 registered sales assistant can be of particular value to a busy financial advisor or financial advisor team that receives a significant volume of unsolicited trade orders from clients in his/her/its book of business. Disadvantages of Registered Sales Assistants A registered sales assistant who is subject to the restrictions listed above is a pure order taker, who cannot offer advice and counsel. The financial advisor of record thus may want to handle unsolicited orders, to offer such advice to clients where appropriate, when these orders might be ill-advised. Content of the Exam The Series 11 exam consists of 50 questions and takes one hour. A score of 70% is a passing grade. The main topical areas covered in the exam are Types of securitiesCustomer accounts and ordersSecurities marketsSecurity industry regulations More particularly, the Series 11 exam tests knowledge of Classes of common stock market value/current price fractional sharesTypes of preferred stock, such as cumulative, convertible, callable and adjustable/variable rateThe distinction between common and preferre d stocks and debt securitiesTypes of options and basic terminologyAmerican depositary receipts/shares (ADRs and ADSs)Real estate investment trusts (REITs)Types of investment company products and exchange-traded funds (ETFs)Types of accounts and the transactions that can be made in eachAccepting customer orders and transmitting them for execution Types of transactions and orders and when they are usedInformation to be recorded on a client order ticketDetermining a clients ability to deliver securities to be soldSettlement requirementsSecurities markets and the differences between auction and dealer marketsTerminology related to securities transactionsRequirements in effect during trading haltsRoles of the SEC and the Federal ReserveRoles of FINRA and other self-regulatory organizationsThe Securities Exchange Act of 1934Insider tradingFINRA and NASD rules on registration, qualification and continuing education Rules of professional conductSupervisory and compliance procedures at membe r firms