Definition of an Agent of a Broker-Dealer
Chapters in this video
- 0:00 The natural person requirement: no firms, no dogs
- 1:38 The three must-have elements for agent status
- 2:19 Function over title: why vice presidents may not be agents
- 3:55 Effecting or attempting to effect: what triggers and what does not
- 5:22 The broker-dealer automatic registration shortcut
- 6:19 Final exam trap review: five core rules
- 7:16 Dealer vs. agent: the identity shift to ponder
What this video covers
- Why an agent must always be an individual natural person, never a firm, corporation, or entity
- The three simultaneous elements required for agent status: individual, represents a broker-dealer or issuer, and effects or attempts to effect securities transactions
- Why a partner, officer, or director is an agent only if they actually do agent work, and why title alone does not qualify them
- What activities trigger agent status: soliciting, recommending, taking or transmitting orders, executing trades, and attempting any of the above
- Why attempting to effect a transaction is sufficient, even if no sale is ever completed
- Which activities do not trigger agent status: bookkeeping, clerical, administrative work, back-office settlement, information technology, and marketing
- The automatic registration shortcut for a broker-dealer's partners, officers, and directors who qualify as agents, and why this shortcut never applies to an issuer's personnel
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