General Securities Sales Supervisor (Series10) Practice Exam

Which of the following registrations is NOT necessary for selling Direct Participation Programs?

1. A Series 22

2. B Series 6

3. C Series 7

4. D Series 62

The correct answer is: B Series 6

The correct answer identifies that a Series 6 registration is not necessary for selling Direct Participation Programs (DPPs). DPPs typically involve investments in limited partnerships or other entities that operate various types of businesses, such as real estate or oil drilling ventures. To sell these types of programs, a representative needs to have an appropriate level of knowledge and experience regarding the specific complexities and associated risks of DPPs. The Series 22, Series 7, and Series 62 registrations qualify representatives to engage in the sale and management of these programs. The Series 6 registration, on the other hand, is geared towards selling mutual funds and variable annuities, but it does not encompass the broader investment vehicles covered by DPPs. Thus, while a Series 6 might allow a registered representative to sell certain investment products, it does not give them the necessary qualifications to sell Direct Participation Programs, which require a more in-depth knowledge and different registration qualifications.