Series eleven - Registered Sales Assistant

Registered Sales Assistant Exam

Series 11: Registered Sales Assistant Qualification

The FINRA Series eleven exam is likewise referred to as the Assistant Representative-Order Processing Examination. Passing it qualifies a brokerage income assistant to take and enter unsolicited customer orders on behalf of a financial guide, and to offer cutting-edge securities fee quotations. An unsolicited order to buy or promote securities is one made by way of the patron on his or her very own initiative, with out guidelines, prompting or inspiration from an worker of the monetary services organization accepting the order for processing.

Higher Standards at Larger Firms

The Series eleven exam is, basically, a noticeably truncated and simplified model of the equal components of the Series 7 examination. Note, but, that the biggest retail brokerage corporations tend to hold their registered income assistants to a much better fashionable of expertise, requiring them to bypass each the Series 7 and Series 66 assessments, the same checks that their monetary advisors should bypass.

Restrictions on Series 11 Registrants

Series eleven registered sales assistants must adhere to those regulations on their paintings activity:

  • They ought to be bodily gift at the premises in their member firm when accepting and processing unsolicited customer orders or when giving rate quotations.
  • They have to be below the direct supervision of an appropriately registered fundamental.
  • They may not provide funding advice or critiques.
  • They may not make pointers.
  • They won't input orders on behalf of the member corporation itself.
  • They may not accept or open new bills.
  • They may not pre-qualify present clients.
  • They may not be given orders for municipal securities or direct participation applications.
  • They won't get hold of extra direct or oblique compensation for the number or size of the transactions that they procedure.

Advantages of Registered Sales Assistants

A Series eleven registered sales assistant can be of unique price to a hectic economic advisor or economic guide crew that receives a good sized volume of unsolicited change orders from clients in his/her/its ebook of enterprise.

Disadvantages of Registered Sales Assistants

A registered income assistant who is situation to the regulations indexed above is a natural order taker, who can not offer advice and counsel. The financial consultant of report therefore might also need to deal with unsolicited orders, to offer such advice to customers wherein suitable, while those orders is probably ill-recommended.

Content of the Exam

The Series 11 examination includes 50 questions and takes one hour. A rating of 70% is a passing grade. The principal topical areas protected within the examination are:

  • Types of securities
  • Customer money owed and orders
  • Securities markets
  • Security industry regulations

More mainly, the Series eleven exam tests information of:

  • Classes of not unusual inventory; market value/modern-day rate; fractional stocks
  • Types of favored stock, including cumulative, convertible, callable and adjustable/variable price
  • The distinction between common and favored shares and debt securities
  • Types of options and simple terminology
  • American depositary receipts/shares (ADRs and ADSs)
  • Real property investment trusts (REITs)
  • Types of funding corporation merchandise and change-traded funds (ETFs)
  • Types of accounts and the transactions that may be made in every
  • Accepting patron orders and transmitting them for execution
  • Types of transactions and orders and when they are used
  • Information to be recorded on a consumer order price ticket
  • Determining a customer's ability to deliver securities to be sold
  • Settlement requirements
  • Securities markets and the differences among public sale and provider markets
  • Terminology related to securities transactions
  • Requirements in impact at some point of trading halts
  • Roles of the SEC and the Federal Reserve
  • Roles of FINRA and other self-regulatory organizations
  • The Securities Exchange Act of 1934
  • Insider trading
  • FINRA and NASD policies on registration, qualification and continuing training
  • Rules of expert conduct
  • Supervisory and compliance techniques at member companies