General Securities Sales Supervisor (Series10) Practice Exam

What must be established for an assistant sales representative concerning order processing?

1. Current customer orders to qualify

2. Acceptance of unsolicited orders

3. Review of account openings

4. Making investment recommendations

The correct answer is: Acceptance of unsolicited orders

Establishing the acceptance of unsolicited orders is critical for an assistant sales representative because it relates directly to the regulatory compliance and operational procedures within a brokerage firm. When it comes to order processing, broker-dealers are required to ensure that they have clear policies regarding how they handle orders, particularly those that come without prior solicitation. In the context of unsolicited orders, this means that the sales representative must understand how to recognize and process orders that a client wishes to place on their own accord, without being influenced by an advisor’s recommendation or solicitation. This is crucial because it ensures that customers' preferences are respected and that they are allowed to make their own trading decisions. It also minimizes the risk of potential miscommunication or compliance issues associated with unauthorized investment advice. In contrast, the other options involve aspects that, while important, do not directly govern the acceptance of orders in the way that unsolicited orders do. Understanding current customer orders is an important part of a sales representative's duties but is not primarily about order processing. Reviewing account openings is a necessary procedure but does not pertain specifically to order handling. Making investment recommendations may be part of a sales representative’s responsibilities, yet it is outside the framework governing how unsolicited orders are managed, which is the focus of the