Since 1988 FINRA has had a registration category for “Assistant Representatives-Order Processing.” FINRA Rule 1041 defines an Assistant Representative-Order Processing as “persons associated with a member who accept unsolicited customer orders for submission for execution by the member.”
However, Rule 1042 provides restrictions on what these individuals may do. Alan Foxman, an attorney with the law offices of Rita G. Dew, P.A. and a senior consultant with National Compliance Services, Inc. in Delray Beach FL, submitted an in-depth look at what the Sales Assistant can and cannot do under FINRA Rule 1041 in this month’s edition of OnWallStreet and cautions the use of assistants performing the mechanical task of typing orders into Instinet, SelectNet and/or Posit.
I encourage you to review, particularly if you are an advisor currently utilizing the services of a Sales Assistant or considering hiring in this capacity.
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