Definition of a Broker-Dealer

What this video covers

• The statutory definition of broker-dealer under the Uniform Securities Act (USA): any person engaged in the business of effecting transactions in securities for the account of others or for its own account
• Why broker capacity (agent, commission) and dealer capacity (principal, markup or markdown) can never coexist on the same trade, even though a firm registers as both
• The four categories of excluded entities: agents, issuers, banks/savings institutions/trust companies, and certain persons with no place of business in the state
• Why bank holding companies are not excluded from the broker-dealer definition even though banks are, and why "excluded" is stronger than "exempt"
• Route A (institutional-only transactions with no in-state office) versus Route B (existing non-resident customers with no in-state office) for no-office exclusions
• Why there is no dollar threshold for pension trusts under the broker-dealer exclusion, unlike the investment adviser exemption
• The three requirements for Canadian broker-dealer limited registration: good standing in Canada, no US office, membership in a Canadian self-regulatory organization (SRO)
• The 30-day effective date and December 1 renewal deadline for Canadian limited registration, and the two permitted client types