Definition of a Broker-Dealer Agent
Chapters in this video
- 0:00 What is an agent: individual, never a firm
- 1:10 Effecting a transaction vs. purely clerical staff
- 3:07 Four issuer-side exclusions and the closed list
- 4:44 Federal de minimis exclusion for BD representatives
- 5:42 Registration tethered to the employer
- 7:13 Agents of an issuer: the startup trap
- 7:48 Rapid-fire exam recap
What this video covers
- Why an agent is always an individual natural person, never a firm or business entity, and how this differs from the broker-dealer itself
- What effecting or attempting to effect a transaction means: soliciting, recommending, or accepting orders, and why purely clerical staff fail this test
- The four issuer-side exclusions (exempt securities, exempt transactions, narrow federal covered securities slice, and no-commission existing employees) and why they operate as independent alternatives
- Why the exempt-securities list is closed and traps like insurance-company, credit-union, and exchange-listed securities do not qualify
- The federal de minimis exclusion for broker-dealer representatives and its exact 30-day and 14-day requirements with an established customer
- Why an agent's registration is tethered to their employer and becomes ineffective immediately upon leaving a firm, with the three-party notification flow to the administrator
- How a startup founder selling their own company's shares can be an agent of the issuer unless an exclusion or exemption applies
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 66 course also includes adaptive practice questions and spaced-repetition flashcards.