General Securities Sales Supervisor (Series10) Practice Exam

An assistant sales representative is allowed to do which of the following?

1. Qualify new customers

2. Trade for the firm's account

3. Solicit orders from customers

4. Make recommendations of securities to customers

The correct answer is: Qualify new customers

The assistant sales representative is permitted to qualify new customers as part of their role. Qualifying new customers involves gathering necessary information to assess their suitability for the firm's products and services, which is a critical part of the sales process. This task is often handled by a support role to ensure that only appropriate clients proceed further in the sales funnel, allowing licensed representatives to focus on more complex sales activities. On the other hand, trading for the firm's account and soliciting orders from customers generally require a higher level of authorization or licensing, as they involve greater responsibility and potential regulatory scrutiny. Making recommendations about securities also typically falls under the purview of licensed representatives, as this requires a deeper understanding of the clients' financial situations and investment strategies. Therefore, while qualifying new customers can be an essential task for an assistant sales representative, other activities, such as trading and recommending securities, necessitate compliance with regulatory requirements and usually cannot be performed by non-licensed or assistant staff.