FINRA Requires Order Taker Registration

In late 2017, FINRA pronounced in Regulatory Notice 17-30 that, "Beginning on October 1, 2018, unregistered persons cannot accept an order from a customer under any circumstances. Only appropriately registered persons can accept an order from a customer." At the same time, FINRA decided to eliminate the Series 11 registration category for order processing assistant representatives.

FINRA is of the view that accepting unsolicited customer orders for the purchase or sale of securities is not considered a clerical or ministerial function. Supplementary Material to new FINRA Rule 1230 proclaims that "associated persons who accept customer orders under any circumstances shall be registered in an appropriate registration category pursuant to Rule 1220."