Chapter 4 - Regulation of Agents of Broker-Dealers and Agents of Issuers Flashcards Preview

Series 63 > Chapter 4 - Regulation of Agents of Broker-Dealers and Agents of Issuers > Flashcards

Flashcards in Chapter 4 - Regulation of Agents of Broker-Dealers and Agents of Issuers Deck (17):

An agent has a nearly identical relationship to a broker-dealer or issuer as a ______ has to an IA



Definition of an agent includes "attempting" to affect securities transactions, meaning that...

anyone who markets or attempts must be registered


Agents representing broker-dealers DO NOT have to register with the state if:

- no place of business in the state and only clients are institutional
- they are registered in another state but client is on vacation (for up to 30 days) in that state and had a relationship with the agent for 30 days prior to the transaction
- they have an existing client moving to another state (must register within 10 days of learning of the move)
- work for a BD not selling securities (annuities, insurance, commodities)


Agents representing issuers DO NOT have to register with the state if:

- they only work with exempt securities (same definition as Series 79 exempt securities)
- they only engage in exempt transactions (see next card)
- they engage in transactions only for affiliates of the issuer (employees, directors, partners) and their pay is not tied to how much they sell


Exempt transactions include

- isolated non-issuer transactions
- transactions between issuers and underwriters
- private placements
- transactions for federal covered securities for qualified purchasers


Silent partners who are not actively engaged in the business of a BD would or would not be registered as agents when the BD registers

Would not. Other partners, directors and officers are however


A person is only considered to be an agent if they are under the ______ of the BD or issuer



Clerical staff of BDs are usually exempt from registration. Here are some rules about that exemption:

- don't solicit or accept orders
- they can give quotes if they were solicited
- can give out account information
- can fax documents for customer signatures
- CANNOT give investment advice
- CANNOT accept solicited or unsolicited orders


BDs and issuers in a state may only employ properly registered agents in that _____



An agent's registration is only valid as long as he or she if actually _________ by a registered BD or issuer



Agent application becomes effective at _____ on the _____ after the application is filed

Noon on the 30th day. Must file a U4 to register


Admin has _____ days to initiate a hearing

90 days


Agent registration is effective until __________

midnight on Dec 31st


Agents do or do not have a net capital requirement?

Do not.


No post-registration requirements, but must help BD with _____ and ____

record keeping and audits


Termination of an agent's registration can happen for the following reasons:

- Denial in public interest
- Revocation if public harm
- Suspension for less serious stuff
- Withdrawal of registration (submit U5, effective after 30 days, still under jurisdiction for 1 year)
- Restriction/limitation to certain settings/capacities


Whenever an agent begins or ends activities as an agent, must notify the Administrator _________

promptly (immediately)