Series 11
What Was the Series 11?
The Series 11 was a securities license that permitted holders to give securities citations and acknowledge unsolicited customer orders for execution. Otherwise called the Assistant Representative - Order Processing Examination (AR), the Series 11 was administered by the Financial Industry Regulatory Authority (FINRA). In 2018, FINRA retired the Series 11 license.
The license applied to brokerage sales assistants that took and entered unsolicited client orders from broker-dealer customers for execution. It didn't permit them to acknowledge orders for municipal securities or direct participation programs, nonetheless. There was no essential for taking the exam, however a candidate needed to initially be registered with FINRA.
Figuring out the Series 11
The Series 11 covered people associated with a FINRA member firm who accepted telephone or different communications from the public for the reasons for giving current securities citations and accepting unsolicited customer securities orders (with the striking exception of the previously mentioned municipal securities and direct participation programs) for submission to the normal order execution operations of the member. An unsolicited order is one in which the broker didn't make a recommendation to the customer however that the customer mentioned themself.
As per FINRA, an Assistant Representative - Order Processing registrant "may conduct the previously mentioned tasks just in the vicinity of the member, must be under the direct supervision of a suitably registered principal, and may not receive extra direct or indirect compensation for the number or size of transactions effected."
The Series 11 license was in effect an abbreviated rendition of the Series 7, which was and is as yet required by large financial institutions for their sales representatives to get. This is frequently completed alongside the Series 66. Subsequently, the Series 11 was retired and presently sales representatives are required to complete the Series 7 and SIE exam.
Series 11 Prohibited Activities
Assistant representative-order processing registrants were denied from conducting the accompanying activities:
- Dually enlisting as a representative or principal
- Delivering investment guidance or assessment
- Making recommendations
- Making transactions in securities markets for the benefit of the firm
- Accepting or opening new accounts
- Prequalifying possible customers
- Effecting transactions in municipal securities
- Effecting transactions in direct participation programs
Series 11 Structure and Content
The Series 11 Exam comprised of 50 scored different decision questions. Candidates were allocated an hour to complete the exam, which cost $80. A passing score was 70%. There was no penalty for speculating so exam takers were urged to attempt to address each inquiry. The test was organized into the accompanying segments:
- Area 1: Types of Securities (10 inquiries)
- Area 2: Customer Accounts and Orders (24 inquiries)
- Area 3: Securities Markets (5 inquiries)
- Area 4: Securities Industry Regulations (11 inquiries)
After the exam was completed, candidates would receive a segment by-segment enlightening breakdown of their performance, as well as their overall score. Candidates were not permitted to utilize any reference material during the exam, as it was a shut book test. The exam's inquiries changed in light of new regulations or amendments to existing regulations, so candidates were urged to keep side by side of possible turns of events.
Features
- The Series 7 was generally regardless is required by larger and more settled financial institutions corresponding to the Series 11.
- The exam for the Series 11 license comprised of an hour long exam of 50 numerous decision questions that required a 70% passing grade.
- Accepting orders for municipal securities and direct participation programs were restricted.
- In 2018, FINRA retired the Series 11 examination and the relating license, and sales representatives are presently required to complete the Series 7 exam and the SIE exam.
- The license applied explicitly to brokerage sales assistants that took and entered unsolicited orders from customers.
- The Series 11 was a securities license issued by the Financial Industry Regulatory Authority (FINRA) that permitted brokers to give securities citations and acknowledge unsolicited customer orders for execution.
- The official name of the license and exam was the "Assistant Representative - Order Processing Examination."
