Agents Flashcards
Regulation of Agents of Broker-Dealers (15%)
An individual represents an issuer in the sale of its securities.
When is s/he excluded from the definition of agent?
When the issuer is one of the following:
* U.S. or Canadian government & municipal/political subdivisions
* Recognized Foreign government (not political subdivisions)
* Federal chartered
…Bank
* State authorized
…Bank
…Savings institution (not S&L or B&L)
…Trust company
* Employee benefit plan
* Exempt money market instruments
When the representative is
* offering or selling exempt securities
* executing exempt transactions
* involved in sales of investments that are not securities
* selling securities only to employees of the issuer and not earning commissions
Who is an agent?
- A person (Other than a BD) representing a broker-dealer offering or selling exempt or non-exempt securities on exempt or non-exempt transactions
- A person representing an issuer when offering or selling non-exempt securities in non-exempt transactions
The definition of an agent specifically excludes broker-dealers