General Securities Sales Supervisor (Series10) Practice Exam

Which of the following is the main role of a syndicate manager in the context of a Group order?

1. To process individual orders

2. To execute orders on behalf of clients

3. To disclose the identity of clients to other syndicate members

4. To prioritize orders based on timing

The correct answer is: To disclose the identity of clients to other syndicate members

The primary role of a syndicate manager in the context of a Group order is to facilitate the overall coordination and management of the syndicate formation, which often involves determining how the bond or stock offering will be distributed among various dealers. This includes optimizing the placement of shares among the syndicate members while maintaining confidentiality regarding client identities. Disclosing the identities of clients to other syndicate members would undermine the trust and confidentiality essential in such transactions. The syndicate manager coordinates the processes related to order collection, allocation, and communication among syndicate members while ensuring that client information remains proprietary. The focus of their role is thus on managing the syndicate's actions and responsibilities without revealing sensitive client identities, making the correct choice about the role as such. In relation to the other options, processing individual orders and executing orders on behalf of clients are tasks typically handled by the individual members of the syndicate rather than the syndicate manager. Prioritizing orders based on timing is more about the execution phase and is usually addressed by the trading desks within the syndicate. Thus, these actions do not accurately reflect the central responsibility of the syndicate manager.