BD - Regs Flashcards
Definition of an
Agent of an Issuer
an individual who represents an issuer in the sale of its securities to the public
Agent of an Issuer
is exempt from registration IF Transactions Are:
-Exempt Transaction’s
OR
-Done only with Employee’s Partners, or directors of the issuer
and NO COMPENSATION IS PAID to agent
Who needs to register as an agent of BD
Anyone who represents the BD in SOLICITING or DOING a securities transaction
NO EXCEPTIONS
EVEN if
-they arent being paid
-they are only attempting to make a transaction (not actually making one)
(AGENTS OF ISSUERS ARE REPRESENTING THE iSSUER NOT A BD AND HAVE THEIR OWN RULES FOR IF THEY ARE CONSIDERED A AGNET OF BD)
is
An agent’s assistant who takes phone messages to buy or sell securities
considered an agent?
No (because they are just taking the call not actually soliciting or doing the transaction)
Therefore they dont have to register as an agent
is
A person who simply provides quotes
considered an agent?
No (because they are just quoting a price not actually soliciting or doing transactions)
Therefore they dont have to register as an agent
BD must register in which states?
EVERY state it has an office
or
any NON INSTITUTIONAL clients
If BD closes its doors
Does it need to maintain a Surety Bond?
Yes
for 3 years after closing doors
If a BD Sponsors a
Wrap Program
It must Register as an IA
If BD holds a 3rd party check for ________ days it then has custody
3 Business Days
Is Limited Registration given to BD and Agents of BD that reside in:
-Canada
-Mexico
-Canada - Yes
-Mexico - No
Can Agents of BD split commissions?
Yes as long as:
-they are both with the same BD
and
-both registered in the same state
Agents of BD register by filing which Form?
Form U4
an Agent helps a client who is temporarily in another state
Do they need to register in that state
(the one the Client is temporarily staying in)
No
(There’s probably more details there)
